Exercise $8-4$A Determining the cost of an asset

Southwest Milling Co$.$ purchased a front$-$end loader to move stacks of lumber. The loader had a list price of $$140,000.$ The seller agreed to allow a $4$ percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $$1,200.$ Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $$1,800.$ The loader operator is paid an annual salary of $$60,000.$ The cost of the company's theft insurance policy increased by $$800$ per year as a result of acquiring the loader. The loader had a four$-$year useful life and an expected salvage value of $$6,000.$

Required

a$.$ Determine the amount to be capitalized in an asset account for the purchase of the loader.

b$.$ Record the purchase in general journal format.