Final answer:
The total cost of the truck is $46,500, which includes the cash price, sales taxes, and painting and lettering, but not the accident insurance or motor vehicle license fee.
Step-by-step explanation:
The cost of the truck for Whispering Winds Company includes various expenditures. To calculate the total cost, you will add the cash price of the truck and all additional costs that are necessary to prepare the truck for its intended use. This includes the cash price, sales taxes, and painting and lettering. However, the cost of accident insurance and the motor vehicle license fee would typically be considered periodic expenses and not part of the initial cost of the truck.
Total cost of the truck would be calculated as follows:
- Cash Price: $43,000
- + Sales Taxes: $3,100
- + Painting and Lettering: $400
- Total: $46,500
This total reflects the acquisition cost that would be recorded on the company's balance sheet as the truck's asset value.