General Accounting Helix Transport purchases a new truck for $60,000.••Sales tax: $3,600Company decals painted: $1,200Annual license fee: $200•Safety testing before use: $400What is the total capitalized cost of the truck?

Step 1: Definition of Capitalized CostThe capitalized cost of an asset includes all expenditures…

Answered: Helix Transport purchases a new truck…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5MC: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to...

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A5
The cost of new truck!
Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? A. $60,600 B. $66,100 C. $54,000 D. $59,400
Speed-ee Delivery is purchasing a new truck for its fleet. It pays the following costs at the time of the purchase. Cost Amount Purchase Price $ 60,000 Title Fees 1,800 Sales Tax 4,200 Insurance for the 1st year 3,000 What is the amount that Speed-ee Delivery will record as an Equipment asset for the purchase of the truck?
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Current Attempt in Progress Monty Corp. incurs these expenditures in purchasing a truck: cash price $46,000, accident insurance (during use) $2,200, sales taxes $4,400, motor vehicle license $300, and painting and lettering $1,700. What is the cost of the truck? Cost of the truck $ eTextbook and Media Save for Later Attempts: unlimited Submit Answer

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Helix Transport purchases a new truck for $60,000. • • Sales tax: $3,600 Company decals painted: $1,200 Annual license fee: $200 • Safety testing before use: $400 What is the total capitalized cost of the truck?