Question

Do It! Review 9-1 Pharoah Company purchased a delivery truck. The total cash payment was $43,222, including the following items. Negotiated purchase price $34,200 Installation of special shelving 2,810 Painting and lettering 830 Motor vehicle license 260 Annual insurance policy 3,070 Sales tax 2,052 Total paid $43,222 Calculate the cost of the delivery truck. The cost of the delivery truck $enter the cost of the delivery truck in dollars.

Answer 1

Answer:

$39,892

Explanation:

The computation of the cost of the truck is shown below:

= Negotiated purchase price of the delivery truck + Installation cost of special shelving +  Painting and lettering cost +  Sales tax

= $34,200 + $2,810 + $830 + $2,052

= $39,892

The motor vehicle license and the annual insurance policy is an annual cost expense which is not considered for computing the cost of the delivery truck. Hence, ignored it