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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? 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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