Pharoah Company purchased a delivery truck. The total cash payment was $36,086, including the following items.Negotiated purchase price$27,600Installation of special shelving2,650Painting and lettering690Motor vehicle license440Two-year insurance policy3,050Sales tax1,656Total paid$36,086Calculate the cost of the delivery truck.Cost of the delivery truck32596

Step 1: Identify the Direct CostsThese are costs directly related to acquiring and preparing the…

Answered: Pharoah Company purchased a delivery…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 12PA: Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells...

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Wildhorse Co. incurs these expenditures in purchasing a truck: cash price $24,300, accident insurance (during use) $2,500, sales taxes $1,22O, motor vehicle license $510, and painting and lettering $1,850. What is the cost of the truck? The cost of the truck %24
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