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 $124,410. The seller agreed to allow a 4.75 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,340. Southwest Milling had to hire a specialist to calibrate the loader. The specialists fee was $780. The loader operator is paid an annual salary of $5,170. The cost of the companys theft insurance policy increased by $2,430 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $6,700.

Required:

Determine the amount to be capitalized in an asset account for the purchase of the front-end loader.

Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.