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Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $124,200, The selier agreed to allow a 5.50 percent discount because Southwest Maling poid cash. Detwery terms were FOB shipping point. Freight cost amounted to $2.890. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $9tho0. The loader operator is paid an annual salary of $40,500. The cost of the company's theft insurance policy increased by $2,450 per year as a result of acquiring the losdec. The looder had a four-year usefut Ife and an expected salvage value of $14,300 Required a. Determine the amount to be capitaized in an asset occount for the purchase of the loader. b. Pecord the purchase in general journal formot. Complete this question by entering your answers in the tabs below. Determine the amount to be capitalized in an asset account for the purchase of the loader. (Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.)