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Can you check this please Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $123,200.
Can you check this please
Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $123,200. The seller agreed to allow a 5.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2.920. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $880. The loader operator is paid an annual salary of $39,320. The cost of the company's theft insurance policy increased by $2,320 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $9,600. Required Determine the amount to be capitalized in the asset account for the purchase of the front-end loader. (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 Less: Discount Freight cost Specialist fee Operator salary Salvage value Total costs $ $ 123,200 (6,160) 2,920 880 39,320 (9,600) 150,560 Step by Step Solution
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