Southwest Milling Co purchased a front-end loader to move stacks of lumber. The loader had...
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Southwest Milling Co purchased a front-end loader to move stacks of lumber. The loader had a list price of $115,250. The seller agreed to allow a 600 percent discount because Southwest Milling paid cash Delivery terms were FOB shipping point Freight cost amounted to $2,650. Southwest Milling had to hire a specialist to calibrate the loader . The specialist's fee was $920. The loader operator is paid an annual salary of $9,640. The cost of the company's theft insurance policy increased by $1,800 per year as a result of acquiring the loader The loader had a four-year useful life and an expected salvage value of $9.200 Required Determine the amount to be capitalized in the asset account for the purchase of the front-end loader (Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.) Costs that are to be capitalized List price Total costs
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