Question

Cullumber Company purchases a new delivery truck for $71,000. The sales taxes are $2,300. The logo of the company is painted on the side of the truck for $2,000. The truck's annual license is $150. The truck undergoes safety testing for $290. What does Cullumber record as the cost of the new truck?

Answer 1

To calculate the cost of the new truck, add the purchase price, sales taxes, and additional expenses.

Step-by-step explanation:

In order to calculate the cost of the new truck, we need to consider the purchase price, sales taxes, and additional expenses.

First, add the purchase price of $71,000 to the sales taxes of $2,300: $71,000 + $2,300 = $73,300. Next, add the cost of painting the company logo on the truck, which is $2,000: $73,300 + $2,000 = $75,300. Then, include the annual license fee of $150 and the safety testing cost of $290: $75,300 + $150 + $290 = $75,740.