Arnold Company purchases a new delivery truck for $45000. The sales taxes are $2500. The logo of the company is painted on the side of the truck for $1200. The truck's annual license is $120. The truck undergoes safety testing for $220. What does Arnold record as the cost of the new truck?

a) $47500.

b) $48920.

c) $46920.

d) $49040.

Arnold record as the cost of the new truck = $49,040

so correct option is d) $49040

Explanation:

given data

delivery truck = $45000

sales taxes = $2500

painted cost = $1200

annual license = $120

safety testing = $220

to find out

Arnold record as the cost of the new truck

solution

we know that Arnold record as the cost of the new truck is express as

Arnold record as the cost of the new truck = delivery truck + sales taxes + painted cost + annual license + safety testing ... 1

put here value we get

Arnold record as the cost of the new truck = $45000 + $2500 + $1200 + $120 + $220

Arnold record as the cost of the new truck = $49,040

so correct option is d) $49040