Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 8-4a (algo) determining the cost of an as

Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Miling Company purchased...

90.2K

Verified Solution

Question

Accounting

image
Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Miling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $116,540. The seller agreed to allow a 5.75 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,910. Southwest Miling had to hire a specialist to calibrate the loader. The specialist's fee was $980. The loader operator is paid an annual salary of $23,960. The cost of the company's theft insurance policy increased by $2,330 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected saivage value of $5,900. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A construction project is carried out by a general contractor with the following descriptions: Project Duration: 3 months (Start:...

Finance
Q

Below are some thermochemical data for the dissolution equilibrium of solid aluminum hydroxide in water: Al(OH)3(s) → Al3+(aq) + 3OH−(aq) ΔfH∘/kJ⋅mol−1 −1284 −538.4 −230.02 S∘/J⋅mol−1⋅K−1 85.4 −325 −10.9 Part A...

Chemistry
Q

If equation for angular displacement of a particle moving on circular path is given by...

Physics
Q

Rewrite this number in appropriate scientific notation 0 0000875 answer

Statistics
Q

the quotient and remainder using synthet 2x 3 8x 2 6x 2 x 5

Algebra
Q

Quantitative Analysis Delta company produces a single product known as product X. The company has...

Accounting
Q

A cement manufacturer has supplied the following data: Tons of cement produced and sold 255,000...

Accounting
Q

On March 3rd, Blowout Sales sells makes $3,450.00 in cash sales of general merchandise which...

Accounting
Q

Savings Bonds For many years, the U.S. Treasury has issued savings bonds, starting with Series...

Accounting
Q

Problem 11.4A Shareholders' Equity L.O. 4,5 Early in the year Bill Barnes and several friends...

Accounting
Q

Assume that the population for Age is normally distributed, even if the sample is not....

Accounting
Q

Calculate the Weighted Average Cost of Capital (WACC) using the following information: Long Term Debt...

Finance