Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1

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 \$116,220. The seller agreed to allow a 6.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,560. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $860. The loader operator is paid an annual salary of $43,990. The cost of the company's theft insurance pollcy increased by $2,460 per year as a result of acquiring the loader. The loader had a four-year useful ilfe and an expected salvage value of $7.000 Required: Determine the amount to be capitalized in an asset account for the purchase of the frontend loader. Note: Round your answers to the nenrest whole doller. Amounts to be deducted thould be indicated with minus sign