A company incurred the following costs for a new delivery truck: Purchase price $ 150 comma 000 Sales tax 7 comma 900 Delivery charge from sellers location 1 comma 200 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 truck before it was used for the first time 3,000 What is the cost of the delivery truck

$168,200

Explanation:

Given that,

Purchase price = $ 150,000

Sales tax = 7,900

Delivery charge from sellers location = 1,200

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 truck before it was used for the first time = 3,000

All the above expenses are included in determining the cost of the delivery truck. Normal repairs to the truck and insurance on truck are also included in the cost of truck because it was incurred before the truck used for the first time.

Cost of the delivery truck:

= Purchase price + Sales tax + Delivery charge from sellers location + Special racks for storage + Normal repairs to the truck before it was used for the first time + Signs painted on the truck + Insurance on truck before it was used for the first time

= $150,000 + $7,900 + $1,200 + $3,000 + $1,100 + $2,000 + $3,000

= $168,200