Nancy, Inc. purchased a long-haul truck from Sebring Trucks for $300,000. Nancy paid $1,360 freight for delivery of the truck and $8,600 to install radio and computer equipment in the truck. The truck driver went to a special school (at no charge to Nancy) to learn the computer technology. This training would have cost $2,400 if Nancy had not bought new radio and computer equipment. The state charged a 5% sales tax on the truck's invoice price. What is the capitalized cost of the truck? O $300,000 O $308,600 O $317,200 O $324,960
Nancy, Inc. purchased a long-haul truck from Sebring Trucks for $300,000. Nancy paid $1,360 freight for delivery of the truck and $8,600 to install radio and computer equipment in the truck. The truck driver went to a special school (at no charge to Nancy) to learn the computer technology. This training would have cost $2,400 if Nancy had not bought new radio and computer equipment. The state charged a 5% sales tax on the truck's invoice price. What is the capitalized cost of the truck? O $300,000 O $308,600 O $317,200 O $324,960
Business Its Legal Ethical & Global Environment
10th Edition
ISBN:9781305224414
Author:JENNINGS
Publisher:JENNINGS
Chapter12: Contracts And Sales:introduction And Formation
Section: Chapter Questions
Problem 10QAP
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![Nancy, Inc. purchased a long-haul truck from Sebring Trucks for $300,000. Nancy paid $1,360 freight for
delivery of the truck and $8,600 to install radio and computer equipment in the truck. The truck driver
went to a special school (at no charge to Nancy) to learn the computer technology. This training would have
cost $2,400 if Nancy had not bought new radio and computer equipment. The state charged a 5% sales tax
on the truck's invoice price. What is the capitalized cost of the truck?
$300,000
$308,600
$317,200
$324,960](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5340c3b9-1332-4ae7-b4cf-0f576e0b0993%2Fa27671c2-e3c9-4a6a-998e-e7e98b70ab76%2Fzfdohq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Nancy, Inc. purchased a long-haul truck from Sebring Trucks for $300,000. Nancy paid $1,360 freight for
delivery of the truck and $8,600 to install radio and computer equipment in the truck. The truck driver
went to a special school (at no charge to Nancy) to learn the computer technology. This training would have
cost $2,400 if Nancy had not bought new radio and computer equipment. The state charged a 5% sales tax
on the truck's invoice price. What is the capitalized cost of the truck?
$300,000
$308,600
$317,200
$324,960
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