Financial Accounting

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Capitalized Asset Amount: Truck Purchase


Hamco Machining Company purchased a used truck to be used in its delivery division on February 1st of the current year. It paid \$35,000 for the truck itself, but also had to pay \$900 to ship the vehicle to its headquarters location. At various times throughout the remainder of the year, Hamco paid to change the truck’s oil and rotate its tires. This maintenance cost an additional $775.

What is the amount that should be capitalized on Hamco’s Balance Sheet for purchase of the used truck?