Answer:
$168,200
Step-by-step explanation:
Given that,
Purchase price = $ 150,000
Sales tax = 7,900
Delivery charge from sellers location = 1,200
Special racks for storage = 3,000
Normal repairs to the truck before it was used for the first time = 1,100
Signs painted on the truck = 2,000
Insurance on truck before it was used for the first time = 3,000
All the above expenses are included in determining the cost of the delivery truck. Normal repairs to the truck and insurance on truck are also included in the cost of truck because it was incurred before the truck used for the first time.
Cost of the delivery truck:
= Purchase price + Sales tax + Delivery charge from sellers location + Special racks for storage + Normal repairs to the truck before it was used for the first time + Signs painted on the truck + Insurance on truck before it was used for the first time
= $150,000 + $7,900 + $1,200 + $3,000 + $1,100 + $2,000 + $3,000
= $168,200