Kari purchased a delivery truck and notes the following costs associated with the purchase:

Dealer price: $35,000
Dealer discount: $550
Stamp duty: $1,200
Compulsory third party insurance: $800
12-month insurance coverage against damage and theft: $2,200
Installation of reversing camera in truck: $2,500
Calculate the acquisition cost.



The acquisition cost refers to the total cost of acquiring an asset, including all necessary expenses related to making the asset ready for use. It generally includes the purchase price, taxes, fees, and any costs that directly improve or prepare the asset for operation.

### Given:
- **Dealer price**: $35,000
- **Dealer discount**: $550
- **Stamp duty**: $1,200
- **Compulsory third party insurance**: $800
- **12-month insurance coverage against damage and theft**: $2,200
- **Installation of reversing camera**: $2,500

### Acquisition Cost Calculation:
1. **Initial dealer price** = $35,000
2. **Dealer discount** = -$550 (since it's a deduction)
3. **Net dealer price** = $35,000 - $550 = $34,450
4. **Stamp duty** = $1,200
5. **Compulsory third party insurance** (considered part of the cost for acquisition purposes) = $800
6. **Installation of reversing camera** (this is a direct cost to prepare the truck) = $2,500

### Total Acquisition Cost:
\[
34,450 + 1,200 + 800 + 2,500 = 38,950
\]

Thus, the **total acquisition cost** of the truck is **$38,950**.

Would you like further details on this calculation or any of the specific costs?

### Related Questions:
1. Why isn't the 12-month insurance included in the acquisition cost?
2. How would additional accessories affect the acquisition cost?
3. What is the difference between acquisition cost and operating cost?
4. How does a dealer discount impact overall purchase decisions?
5. What expenses might be excluded from an acquisition cost in other scenarios?

**Tip:** Always ensure to include only costs directly related to the purchase or readiness of an asset when calculating acquisition costs.

Kari purchased a delivery truck and notes the following costs associated with the purchase:

Dealer price: $35,000
Dealer discount: $550
Stamp duty: $1,200
Compulsory third party insurance: $800
12-month insurance coverage against damage and theft: $2,200
Installation of reversing camera in truck: $2,500

Calculate the acquisition cost.

Learn how to calculate the acquisition cost for Kari's delivery truck, including dealer price, discounts, and additional installation costs. This step-by-step solution demonstrates core concepts such as net price calculation and asset acquisition. Suitable for students in Grades 9-11.

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