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 $122,490 The seller agreed to allow a 5.50 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,500. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,090. The loader operator is paid an annual salary of $43,500. The cost of the company's theft insurance policy increased by $2,130 per year as a result of ocquiring the loader. The loader had a four-year usefut life and an expected salvage value of $9,800. 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