Enmerick Corporation purchases a new delivery truck for $45,000.The company logo is painted on the side of the truck for $1,500.The motor vehicle licence is $175.Annual insurance is $1,500.At what amount does Enmerick record the cost of the new truck?

Question

Quizplus · Accepted Answer

The cost of the new truck includes the purchase price ($45,000) and the cost to paint the company logo on it ($1,500), totaling $46,500. The motor vehicle license and annual insurance are considered recurring expenses and not part of the truck's initial cost.

Enmerick Corporation Purchases a New Delivery Truck for $45,000