Question

Wildhorse Co. purchases a new delivery truck for $74000. The sales taxes are $2000. The logo of the company is painted on the side of the truck for $1600. The truck’s annual license is $140. The truck undergoes safety testing for $270. What does Wildhorse record as the cost of the new truck?

Answer 1

Wildhorse record the cost of the new truck as $78010.

Explanation:

We are given the following information in the question:

Cost of new delivery truck = $74000

Sale taxes on truck = $2000

Cost of painting logo of company = $1600

Cost of annual license = $140

Cost of safety testing = $270

Cost of new truck =

`=\text{Cost of new delivery truck+Sale taxes on truck}\\\text{+Cost of painting logo of company+Cost of annual license+Cost of safety testing}\\\\= 74000 + 2000 + 1600 + 140 + 270 \\\\= 78010\$`

Thus, Wildhorse record the cost of the new truck as $78010.