Question

Engler Company purchases a new delivery truck for $60,000. The sales taxes are $4,000. The logo of the company is painted on the side of the truck for $1,600. The truck license is $160. The truck undergoes safety testing for $290. What does Engler record as the cost of the new truck? Group of answer choices $66,050 $65,890 $64,000 $65,600

Answer 1

Answer: $65,890

Step-by-step explanation:

When it comes to capitalizing fixed assets, every cost that was incurred to get the fixed asset ready for use will be included in the cost price.

The cost price here is therefore;

= Cost price + Sales taxes + Logo + safety testing

= 60,000 + 4,000 + 1,600 + 290

= $65,890