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Tom's Reclaimers entered into a contract with Daniel's Demolition to manage the processing of

recycled materials on Daniel's various demolition projects. Services for the $3-$year contract

include collecting, sorting, and transporting reclaimed materials to recycling centers or

contractors who will reuse them. Tom's incurs selling commission costs of $$2,140$ to obtain the

contract. Before performing the services, Tom's also designs and builds receptacles and loading

equipment that interfaces with Daniel's demolition equipment at a cost of $$27,980.$ These

receptacles and equipment are retained by Tom's and can be used for other projects. Daniel's

promises to pay a fixed fee of $$12,470$ per year, payable every $6$ months for the services under the

contract. Tom's incurs the following costs: design services for the receptacles to interface with

Daniel's equipment $$3,230,$ loading equipment controllers $$6,460,$ and special testing and OSHA

inspection fees $$2,140($some of Daniel's projects are on government property$).$

Determine the costs that should be capitalized as part of Tom's Reclaimers revenue

arrangement with Daniel's Demolition. $($If answer is $0,$ please enter $0.$ Do not leave any fields

blank.$)$

Commission costs $

Design services $

Cost of loading equipment controllers $

Inspection fees $

Receptacles and loading equipment

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