Problem 6-22 Accounting for acquisition of assets, including a basket purchase

Trinkle Company made several purchases of long-term assets in 2018. The details of each purchase are presented here.

New Office Equipment

List price: $60,000; terms: 2/10, n/30; paid within the discount period.

Transportation-in: $1,500.

Installation: $2,500.

Page 238Cost to repair damage during unloading: $650.

Routine maintenance cost after eight months: $350.

Basket Purchase of Copier, Computer, and Scanner for $30,000 with Fair Market Values

Copier, $22,000.

Computer, $10,000.

Scanner, $8,000.

Land for New Warehouse with an Old Building Torn Down

Purchase price, $250,000.

Demolition of building, $18,000.

Lumber sold from old building, $6,000.

Grading in preparation for new building, $22,000.

Construction of new building, $510,000.

Required

In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

PROBLEM 6-22

Office Equipment

	$
	___
	$ -

Note: Indicate which items (including dollar amount) are not included and why.

Basket Purchase

Allocation is based on relative market values:

Asset	Fair Market Value	Percent FMV Value		Purchase Price		Allocated Costs
Copier	$	%	x	$	=	$
Computer		%	x		=
Scanner		%	x		=
Total	$	%				$

Land and Building

	Land___
	Building_