Laurier Ltd.recently purchased a new delivery truck and incurred the following costs: invoice price $45,000, taxes, delivery and preparation $8,300.They had the truck painted with the company logo for $650 and paid the increase in the insurance premium of $1,100 on the truck.What is the cost of the truck for accounting purposes?

Question

Quizplus · Accepted Answer

The cost of the truck for accounting purposes will include the invoice price, taxes, delivery and preparation, painting cost, and the increase in the insurance premium. Therefore,

Cost of Truck = Invoice Price + Taxes, Delivery and Preparation + Painting Cost + Insurance Premium
Cost of Truck = $45,000 + $8,300 + $650 + $1,100
Cost of Truck = $53,950

Therefore, the best answer is C.