Sheridan Company purchases a new delivery truck for $53,000. The sales taxes are $4,200. The logo of the company is painted on the side of the truck for $1,000. The truck's annual license is $180. The truck undergoes safety testing for $300. What does Sheridan record as the cost of the new truck?

Sheridan Company purchases a new delivery truck for $53,000. The sales taxes are $4,200. The logo of the company is painted on the side of the truck for $1,000. The truck's annual license is $180. The truck undergoes safety testing for $300. What does Sheridan record as the cost of the new truck?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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Transcribed Image Text:Sheridan Company purchases a new delivery truck for $53,000. The sales taxes are $4,200. The logo of the company is painted on the side of the truck for $1,000. The truck's annual license is $180. The truck undergoes safety testing for $300. What does Sheridan record as the cost of the new truck?

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