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Problem: Module 2 Textbook Problem 12 Learning Objective: 2-8 Identify and determine the cost of long-term operational assets Southwest Milling Co. purchased a front-end loader

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Problem: Module 2 Textbook Problem 12 Learning Objective: 2-8 Identify and determine the cost of long-term operational assets Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $115,680. The 5eller agreed to allow a 5.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,480. Southwest Milling had to hire a specialist to calibrate the loader. The 5 pecialist's fee was $820. The loader operator is paid an annual salary of $40,710. The cost of the company's theft insurance policy increased by $1,670 per year as a fesult of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $10,900. Required Determine the amount to be capitalized in the asset account for the purchase of the front-end loader. (Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.)

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