Question

Pharoah Company purchased a delivery truck. The total cash payment was $36,086, including the following items. Negotiated purchase price $27,600 Installation of special shelving 2,650 Painting and lettering 690 Motor vehicle license 440 Annual insurance policy 3,050 Sales tax 1,656 Total paid $36,086 Calculate the cost of the delivery truck.

Answer 1

$32,596

Step-by-step explanation:

Data provided in the question:

Total cash payment = $36,086

Negotiated purchase price = $27,600

Installation of special shelving = $2,650

Painting and lettering = $690

Motor vehicle license = $440

Annual insurance policy = $3,050

Sales tax = $1,656

Now,

Motor vehicle license and Annual insurance policy are not included in the cost of vehicle as these cost are incurred to upkeep of motor vehicles.

Thus,

Cost of the vehicle

= Negotiated purchase price + Installation of special shelving + Painting and lettering + Sales tax

= $27,600 + $2,650 + $690 + $1,656

= $32,596

Answer 2

Total cost of the delivery truck = $32596

Step-by-step explanation:

given data

total cash payment = $36086

Negotiated purchase price = $27600

Installation of special shelving = 2650

Painting and lettering = 690

Motor vehicle license = 440

Annual insurance policy = 3050

Sales tax = 1,656

Total paid = $36,086

to find out

cost of the delivery truck

solution

we know that Motor vehicle license and Annual insurance policy are expended off to some appropriate expense account

Total cost of the delivery truck = Negotiated purchase price + Installation of special shelving + Painting and lettering + Sales tax

put here value

Total cost of the delivery truck = $27600 + $2650 + $690 + $1,656

Total cost of the delivery truck = $32596