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fill all blanks for thumbs up! Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of
fill all blanks for thumbs up!
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 Determine the amount to be capitalized in the asset account for the purchase of the front-end loader. (Amounts to be deducted should be indicated with minus sign.) Conts that are to be capitalzed List price $ Total costs 0 Southwest Milling Co. purchased a front-end lo The seller agreed to allow a 4 percent discount point. Freight cost amounted to $1,200. Southw fee was $1,800. The loader operator is paid an i policy increased by $800 per year as a result of expected salvage value of $6,000. Required Determine the amount to be capitalized in the as deducted should be indicated with minus sign. Costs that are to be capitalized: List price Freight cost Insurance 0 Operator salary Salvage value Specialist fee Step by Step Solution
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