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 Company purchased a delivery truck. The total cash payment was $36,270, including the following items. Negotiated purchase price Installation of special shelving Painting and lettering Motor vehicle license Annual insurance policy Sales tax Total paid $31,200 1,430 1,170 130 650 1,690 $36,270 Calculate the cost of the truck and the operating costs of the truck.
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Crane Company incurs these expenditures in purchasing a truck: cash price $22,480, accident insurance (during use) $1,570, sales taxes $1,690, motor vehicle license $590, and painting and lettering $2,460.What is the cost of the truck? The cost of the truck $Enter a dollar amount
Blossom Company incurs these expenditures in purchasing a truck: cash price $26,470, accident insurance (during use) $2,080, sales taxes $1.660, motor vehicle license $570, and painting and lettering $2.190 What is the cost of the truck? The cost of the truck $
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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
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