A company incurred the following costs for a new delivery truck: Purchase price $130,000 Sales...
Question:
A company incurred the following costs for a new delivery truck:
| Purchase price | $130,000 |
| Sales tax | $7,300 |
| Delivery charge from seller's location | $1,500 |
| Special racks for storage | $3,000 |
| Normal repairs to the truck before it was used for the first time | $1,100 |
| Signs painted on the truck | $2,000 |
| Insurance on the truck before it was used for the first time | $3,000 |
What is the cost of the delivery truck?
A. $143,800
B. $140,800
C. $138,800
D. $147,900
Sales tax:
The tax which is imposed by the government authorities on the sale of any goods and services is known as the sales tax. It is a consumption tax. Generally, the sales tax is levied at the point of the sale which is collected by the retailer.
Answer and Explanation: 1
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View this answerThe correct answer is option D which is $147,900
Computation of cost of the delivery truck
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