Question

Sunland Company incurs these expenditures in purchasing a truck: cash price $27,210, accident insurance (during use) $1,570, sales taxes $1,840, motor vehicle license $670, and painting and lettering $2,490.
What is the cost of the truck?

Answer 1

Answer:

Cost of Truck = $31,540

Explanation:

given data

cash price = $27,210

accident insurance =  $1,570

sales taxes = $1,840

motor vehicle license = $670

painting and lettering =  $2,490

to find out

cost of the truck

solution

as we know that Accidental insurance and the vehicle license are not include in cost of truck

because there are yearly costs

so that cost of the truck will be as

cost of the truck = cash price + sales taxes + painting and lettering   ...............1

put here value we get

Cost of Truck = $27,210 + $1,840 + $2,490

Cost of Truck = $31,540