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Jan. 1 Paid $278,000 cash plus $11,120 in sales tax and $1,900 in transportation (FOB shipping point) for a new loader. The loader is estimated
Jan. 1 Paid $278,000 cash plus $11,120 in sales tax and $1,900 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $27,800 salvage value. Loader costs are recorded in the Equipment account. Jan. 3 Paid $6,000 to enclose the cab and install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,800. Dec. 31 Recorded annual straight-line depreciation on the loader
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