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Nordic Freight Services purchased a new delivery truck and incurred the following costs: Item Amount Purchase price $115,000 Sales tax $6,900 Delivery from seller's location $1,800 Custom shelving installation $2,500 Routine mechanical check-up before first use $1,000 Company logo painted on truck $1,700 Insurance before first use $2,800 What is the cost of the delivery truck to be capitalized? A. $123, 900 B. $129,500 C. $127,900 D. $121, 200

Nordic Freight Services purchased a new delivery truck and incurred the following costs: Item Amount Purchase price $115,000 Sales tax $6,900 Delivery from seller's location $1,800 Custom shelving installation $2,500 Routine mechanical check-up before first use $1,000 Company logo painted on truck $1,700 Insurance before first use $2,800 What is the cost of the delivery truck to be capitalized? A. $123, 900 B. $129,500 C. $127,900 D. $121, 200

Principles of Accounting Volume 1
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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I need help with this financial accounting problem using proper accounting guidelines.

Nordic Freight Services purchased a new delivery truck and incurred the following costs: Item Amount Purchase price $115,000 Sales tax $6,900 Delivery from seller's location $1,800 Custom shelving installation $2,500 Routine mechanical check-up before first use $1,000 Company logo painted on truck $1,700 Insurance before first use $2,800 What is the cost of the delivery truck to be capitalized? A. $123, 900 B. $129,500 C. $127,900 D. $121, 200
Transcribed Image Text:Nordic Freight Services purchased a new delivery truck and incurred the following costs: Item Amount Purchase price $115,000 Sales tax $6,900 Delivery from seller's location $1,800 Custom shelving installation $2,500 Routine mechanical check-up before first use $1,000 Company logo painted on truck $1,700 Insurance before first use $2,800 What is the cost of the delivery truck to be capitalized? A. $123, 900 B. $129,500 C. $127,900 D. $121, 200
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