Salvia Company Recently Purchased a Truck

Multiple Choice

Salvia Company recently purchased a truck.The price negotiated with the dealer was $40,000.Salvia also paid sales tax of $2,000 on the purchase,shipping and preparation costs of $3,000,and insurance for the first year of operation of $4,000.At what amount should the truck be recorded on the balance sheet prior to recording depreciation expense?

A) $40,000.
B) $42,000.
C) $43,000.
D) $45,000.