Final answer:
Sales taxes and motor vehicle licenses should be charged to the Delivery Equipment when purchasing it.
Step-by-step explanation:
When purchasing delivery equipment, sales taxes and motor vehicle licenses should be charged to Delivery Equipment. This is because these expenses are directly related to the acquisition and use of the delivery equipment. Sales taxes are charges imposed by the government on the purchase of goods or services, and motor vehicle licenses are fees required for the legal operation of vehicles.
By charging these expenses to Delivery Equipment, it allows for proper tracking and allocation of costs associated with the equipment. This ensures that the costs are accounted for accurately in the company's financial records and for tax purposes as well.
In summary, true, sales taxes and motor vehicle licenses should be charged to Delivery Equipment when purchasing it.