Angie's Blooms purchased a delivery van with a list price of $40000. The company was given a $4000 cash discount by the dealer and paid $2000 sales tax. Annual insurance on the van is $1000. As a result of the purchase by how much will Angie's Blooms increase its van account?

A) $40000
B) $36000
C) $39000
D) $38000

Cash Discount

A reduction in the price paid for goods or services offered to customers as an incentive for early payment.

Annual Insurance

The total cost of insurance coverage for an entity or individual for a one-year period.

List Price

The advertised or published price of a product or service before any discounts or deductions are applied.