1.

Southwest Milling Ca. purchased a front-end loader to move stacks of lumber. The laader had a list price of $121,590. The seller agreed to allow a 5.50 percent discount because Southwest M illing paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,270. Southwest Milting had to hire a specialist to calibrate the loader, The specialist's fee was $1,030, The loader operator is paid an annual salary of $42,660. The cost of the company's theft insurance policy increosed by $2,360 per year as a result of acquiring the loadec. The looder had o four-year useful kfe and an expected salvage value of $13,600. Required Determine the amount to be capitalized in the asset account for the purchase of the front-end looder. (Pound your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.)