Question

Sandhill Co. incurs these expenditures in purchasing a truck cash price $26,800, accident insurance (during use) $2.150, sales taxes $1,206, motor vehicle license $580, and painting and lettering $1,770. What is the cost of the truck? Cost of the truck 5 Using multiple attempts willimpactyour score. Attempts: 0 of 3 used 25% score reduction after at tempt 2

Answer 1

The cost of the truck is $32,506.

Step-by-step explanation:

The cost of the truck can be calculated by adding up all the expenditures associated with the purchase. In this case, the cash price of the truck is $26,800, accident insurance is $2,150, sales taxes are $1,206, motor vehicle license is $580, and painting and lettering is $1,770. To find the total cost of the truck, you add all these amounts together: $26,800 + $2,150 + $1,206 + $580 + $1,770 = $32,506.

Answer 2

The cost of the truck for Sandhill Co. is $30,356, which includes the cash price, sales taxes, motor vehicle license, and painting and lettering costs. Accident insurance is not included in the cost of the truck as it is considered an operating expense.

Step-by-step explanation:

The cost of the truck for Sandhill Co. involves adding the cash price of the truck and the additional expenditures that are directly related to the acquisition and preparation of the truck for its intended use. This includes the cash price, sales taxes, motor vehicle license fee, and painting and lettering. Accident insurance is a future operating cost and should not be included in the cost of the asset.

The total cost of the truck is therefore calculated as follows:

• Cash price: $26,800
• Sales taxes: $1,206
• Motor vehicle license: $580
• Painting and lettering: $1,770

Add these amounts together to arrive at the total cost.

Total cost of the truck = $26,800 + $1,206 + $580 + $1,770 = $30,356.