Question

Sunland Company purchases a new delivery truck for $56100. The sales taxes are $4500. The logo of the company is painted on the side of the truck for $1200. The truck license is $180. The truck undergoes safety testing for $280. What does Sunland record as the cost of the new truck?

Answer 1

$62,080

Step-by-step explanation:

The computation of the cost of the new truck is shown below:

Cost of the new truck = Purchase Price of delivery truck + sales taxes + logo painting cost + safety testing costs

= $561,00 + $4,500 + $1,200 + $280

= $62,080

The truck license is a yearly cost so it would not be included while computing the cost of the new truck. Hence, ignored it