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Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader
Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $120,350. The seller agreed to allow a 5.75 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,320. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,060. The loader operator is paid an annual salary of $22,580. The cost of the company's theft Insurance policy Increased by $2,150 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $9,700. Required Determine the amount to be capitalized in an 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 slgn.) Costs that are to be capitalized: List price Total costs $
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