Dallas Corporation purchases a new delivery truck for $35,000.The company logo is painted on the side of the truck for $1,800.The motor vehicle licence is $160.Annual insurance is $1,700.At what amount does Dallas record the cost of the new truck?

Question

Quizplus · Accepted Answer

The cost of the truck includes the purchase price and any costs necessary to prepare the truck for use, such as painting the logo. Therefore, the cost is $35,000 + $1,800 = $36,800. The motor vehicle license and insurance are not included in the cost of the truck.

Dallas Corporation Purchases a New Delivery Truck for $35,000