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Bailey Company purchases a new delivery truck for $35,000. The sales taxes are $2,000. The logo of the company is painted on the side of the truck for $1,200. The truck license is $120. The truck undergoes safety testing for $220. What does Bailey record as the cost of the new truck?$38,420The cost of truck includes the purchase price, the sales tax, painting the logo on the side of the truck, and the safety testing.$35,000 + $2,000 + $1,200 + $220 T/F

Respuesta :

jepessoa

Answer:

true

Explanation:

the cost of the truck should include:

truck sales price  $35,000

sales taxes            $2,000

company's logo     $1,200

safety testing           $220

total                     $38,420

*not included: truck driver's license

Thee original cost of an asset must include its purchase price minus any discounts, and all the elements needed to put the asset into use. In this case, the truck's cost must include all taxes paid, painting of the company's logo and safety testing. It should not include the cost of a truck driver's license because the driver is not part of the truck.

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