Question

Oriole Company incurs these expenditures in purchasing a truck: cash price $26,070, accident insurance (during use) $1,910, sales taxes $1,350, motor vehicle license $260, and painting and lettering $1,960. What is the cost of the truck?

Answer 1

$29,380

Step-by-step explanation:

Calculation of cost of truck for Oriole company.

Cost of truck

Cash price

$26,070

Sales taxes

$1,350

Painting and lettering

$1,960

Total cost of truck

$29,380

Please note that insurance cost and motor vehicle license are revenue expenditures and are ignored while computing the cost of the truck.