Question

Thomas Company incurs these expenditures in purchasing a truck: cash price $24,000, accident insurance (during use) $2,000, sales taxes $1,080, motor vehicle license $300, and painting and lettering $1,700. What is the cost of the truck

Answer 1

Answer:

$26,780

Explanation:

Data provided in the question:

Expenditures:

Cash price = $24,000

Accident insurance = $2,000

Sales taxes = $1,080

Motor vehicle license = $300

Painting and lettering = $1,700

Now,

The cost of the truck will include

= Cash price + Sales taxes + Painting and lettering

= $24,000 + $1,080 + $1,700

= $26,780

Note:

Accident Insurance and Motor Vehicle license are not included in the cost of the truck as they are revenue expenses