Pioneer Trucking Company, which leases trucks to oilfield workers to move their equipment, recently purchased a...

Pioneer Trucking Company, which leases trucks to oilfield workers to move their equipment, recently purchased a truck. The sticker price of the truck was $52,000 and the company paid $47,500. Pioneer also paid sales tax of $3,500 on the purchase, shipping and preparation costs of $4,500, and insurance for the first year of operation of $5,500. At what amount should Pioneer debit to the truck account in their general journal?

Multiple Choice

$52,000.
$47,500.
$52,000.
$55,500.

Solutions

Expert Solution

$55,500

Price of the truck	$47,500
Sales Tax	$3,500
Shipping and Preparation costs	$4,500
	$55,500

Note:
Insurance $5,500 will not be added into truck account, as the
insurance cost for the operation will not be capitalized.

ekkarill92 answered 2 years ago

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