Question

Blue Spruce Corp. incurs the following expenditures in purchasing a truck:

Cash price $53,000
Accident insurance $3,800
Sales taxes $3,400
Motor vehicle license $100
Painting and lettering $400.

What is the cost of the truck?

Answer 1

$56,800

Step-by-step explanation:

The cost of the truck is calculated as;

= Cash price + Sales tax + Painting and lettering

Given that;

Cash price = $53,000

Sales tax = $3,400

Painting and lettering = $400

= $53,000 + $3,400 + $400

= $56,800

Therefore, cost of the truck is $56,800.

* Note

The expenditures for accident insurance and motor vehicle license will not be added to the cost of the truck.