Trentham Transport purchases a new delivery truck for $80,000. The stamp and transfer duty is $3,000. The logo of the company is painted on the side of the truck for $500. The truck registration is $700 and a 12 month accident insurance policy is $1100. The truck undergoes safety testing for $330. What does Trentham Transport record as the cost of the new truck?
A) $85,630.
B) $83,830.
C) $80,000.
D) $83,000.

Question

Quizplus · Accepted Answer

The cost of the new truck is $83,830 ($80,000 + 3,000 + 500 + 330). The costs of registration and insurance are treated as expenses.

Trentham Transport Purchases a New Delivery Truck for $80,000