Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had...
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Accounting
Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,950. The seller agreed to allow a 4.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,590. Southwest Milling had to hire a specialist to calibrate the loader. The specialists fee was $990. The loader operator is paid an annual salary of $44,420. The cost of the companys theft insurance policy increased by $1,580 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $7,600.
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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