Homework Answers
Ans:
| Cost Of Truck | $ 47,730 |
Explanation:
1)
| Invoice Price | $ 46,090 |
| Installation of trailer hitch | $940 |
| Painting and Lettering | $700 |
| Total cost of truck | $ 47,730 |
2) The expenditures for insurance and motor vehicle licence are not included as they do not benefit future periods.
3) As they do not add value for future, they are not included in the cost of truck.
4) These are annual cost and hence it should be expensed in the particular year.
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