Which One of the Following Items Is Not Considered a Part

question 3

Multiple Choice

Which one of the following items is not considered a part of the cost of a truck purchased for business use?

• A) Sales tax
• B) Truck license
• C) Freight charges
• D) Cost of lettering on side of truck

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Definitions:

Useful Life

The estimated time period that an asset is expected to be usable for its intended purpose, affecting its depreciation calculation.

Patent Rights

This is the legal protection granted to an inventor or assignee offering exclusive rights to use and profit from an invention for a certain period.

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period of time.

Legal Life

The duration for which a legal entity, patent, copyright, or other legal protection is valid or enforceable.