Blossom Company purchases a new delivery truck for $77,000. The sales taxes are $4,300. The logo of the company is painted on the side of the truck for $1,000. The truck’s annual license is $120. The truck undergoes safety testing for $300. What does Blossom record as the cost of the new truck?

$82,600

Explanation:

Given that,

Cost of purchasing new delivery truck = $77,000

Sales taxes = $4,300

Cost of painting a logo = $1,000

Truck's annual license = $120

Cost of safety testing = $300

Cost of the new truck:

= Purchase Price + sales taxes + Logo painting cost + safety testing

= $77,000 + $4,300 + $1,000 + $300

= $82,600

Note: The truck license fee is excluded from the calculation of the cost of the new truck because it is paid on yearly basis.

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explanation:

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