#28

A snow removal company purchased a truck on September 1 of the current year to be used during the coming winter for its snow removal service. The following costs were incurred in acquiring the truck and preparing it for use: Purchase (invoice) price $ 25,000 Shipping 1,500 Insurance during shipping 225 Six-month auto insurance policy beginning October 1 1,800 Snow plow installation cost 400 Routine maintenance and oil change 300 Determine the amount to be recorded as cost for the truck