Hidden Lakes Company purchased a delivery truck. The total cash payment was $30,020, including the following items.
|
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.