Problem 8-25A Accounting for acquisition of assets including a basket purchase LO 8-1

Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment

1. List price: $41,500; terms: 2/10 n/30; paid within discount period.
2. Transportation-in: $830.
3. Installation: $560.
4. Cost to repair damage during unloading: $408.
5. Routine maintenance cost after six months: $260.

Basket Purchase of Copier, Computer, and Scanner for $50,500 with Fair Market Values

1. Copier, $21,888.
2. Computer, $9,728.
3. Scanner, $29,184.

Land for New Warehouse with an Old Building Torn Down

1. Purchase price, $84,600.
2. Demolition of building, $5,400.
3. Lumber sold from old building, $1,840.
4. Grading in preparation for new building, $7,800.
5. Construction of new building, $212,000.

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

Basket purchase:

Land and building:

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