southwest milling company purchased a front end loader to move stacks of lumber. the loader...

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Accounting

southwest milling company purchased a front end loader to move stacks of lumber. the loader had a list price of $124,810. the seller agreed to allow a 5.50 percent discount because southwest milling paid cash. delivery terms were FOB shipping point. freight cost amounted to $2,300. southwest milling had to hire a specialist to calibrate the loader. the specialists fee was $800. the loader operator is paid an annual salary of $29,720. the cost of the companys theft insurance policy increased by $1860 per year as a result of acquiring the loader. the loader had a four year useful life and an expected salvage value of $13,700. a.determine the amount to be capitalized in an asset account for the purchase of the loader b.record the putchase in general journal format

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