Question

Sheridan Company incurs the following expenditures in purchasing a truck: cash price $29,000, accident insurance $4,900, sales taxes $2,800, motor vehicle license $100, and painting and lettering $400. What is the cost of the truck?

Answer 1

$32,200

Step-by-step explanation:

Given:

Expenditures in purchasing a truck:

Cash price = $29,000

Accident insurance = $4,900

Sales taxes = $2,800

Motor vehicle license = $100

Painting and lettering = $400

Now,

Accidental insurance and vehicle license are not included in cost of truck, because there are yearly costs.

Therefore,

The cost of the truck = Cash price + Sales taxes + Painting and lettering

= $29,000 + $2,800 + $400

= $32,200