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On January 1, 2021, Paul Company purchased a delivery truck for $ 45,000 on a 120-day, 6 %, note. The interest of $ 900 will
On January 1, 2021, Paul Company purchased a delivery truck for $ 45,000 on a 120-day, 6 %, note. The interest of $ 900 will be paid with the principal. In addition, management had to pay a sales tax of five percent, shipping costs of $ 100, and repair costs of $ 250 to replace a tire that was accidentally punctured.
Required: Calculate the total cost of the equipment. Indicate what the appropriate treatment would be for each cost that was not included in the cost of the equipment.
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