Arnold Company purchases a new delivery truck for $45,000.The sales taxes are $2,500.The logo of the company is painted on the side of the truck for $1,200.The truck's annual license is $120.The truck undergoes safety testing for $220.What does Arnold record as the cost of the new truck?

Question

Quizplus · Accepted Answer

The cost of the truck includes the purchase price, sales taxes, and costs necessary to prepare the truck for use, such as painting the logo and safety testing. The license fee is not included. Therefore, $45,000 + $2,500 + $1,200 + $220 = $48,920.

Arnold Company Purchases a New Delivery Truck for $45,000