Crane Company purchases a new delivery truck for $50,000. The sales taxes are $5,000. The logo of the company is painted on the side of the truck for $1,600. The truck's annual license is $130. The truck undergoes safety testing for $270. What does Crane record as the cost of the new truck? A) $56,870 B) $54,870 C) $55,000 D) $57,000
Crane Company purchases a new delivery truck for $50,000. The sales taxes are $5,000. The logo of the company is painted on the side of the truck for $1,600. The truck's annual license is $130. The truck undergoes safety testing for $270. What does Crane record as the cost of the new truck? A) $56,870 B) $54,870 C) $55,000 D) $57,000
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PB: Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is...
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![Crane Company purchases a new delivery truck for $50,000. The sales taxes are
$5,000. The logo of the company is painted on the side of the truck for $1,600. The
truck's annual license is $130. The truck undergoes safety testing for $270. What
does Crane record as the cost of the new truck?
A) $56,870
B) $54,870
C) $55,000
D) $57,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c032cd0-8a0c-4fca-8275-d12bbcb2fa9c%2F53d15379-08e5-4946-9fed-4784971e60e2%2Fdiobu89_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Crane Company purchases a new delivery truck for $50,000. The sales taxes are
$5,000. The logo of the company is painted on the side of the truck for $1,600. The
truck's annual license is $130. The truck undergoes safety testing for $270. What
does Crane record as the cost of the new truck?
A) $56,870
B) $54,870
C) $55,000
D) $57,000
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