Question - Hunter Co. purchased a delivery truck. The total cash payment was $30,020, including:
Negotiated purchase price $24,000
Installation of special shelving 1,100
Painting and lettering 900
Motor vehicle license 180
Annual insurance policy 2,400
Sales tax 1,440
Total paid $30,020
Explain how each of these costs would be accounted for.
Calculate depreciation expense and make journal entry.