Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,380. The s agreed to allow a 5.50 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transpor cost amounted to $2,900. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $850. The loa operator is paid an annual salary of $13,170. The cost of the company's theft insurance policy increased by $1,980 per year as a re of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $5,600. 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. Costs that are to be capitalized: List price

Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,380. The s agreed to allow a 5.50 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transpor cost amounted to $2,900. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $850. The loa operator is paid an annual salary of $13,170. The cost of the company's theft insurance policy increased by $1,980 per year as a re of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $5,600. 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. Costs that are to be capitalized: List price

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...

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