Question
Q. Youngjin Home Appliances Co. in Seoul, Korea, purchases a delivery truck. Following are list of payments made by Youngjin when it acquires the truck
Q. Youngjin Home Appliances Co. in Seoul, Korea, purchases a delivery truck. Following are list of payments made by Youngjin when it acquires the truck (Currency in Korean won, )
A. Cost of truck: 22,000,000 (10% value-added tax included)
B. Vehicle delivery cost: 500,000
C. Costs for painting company name and logo on trucks body: 200,000
D. Municipal bond due and fees for registration and license plate: 800,000
E. Annual insurance policy: 600,000
F. Annual maintenance service plan: 400,000
Instruction: Explain how these costs would be accounted for (i.e., whether each of them should be included in the cost of truck or not and why).
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