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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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