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Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,880. The seller agreed to
Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,880. The seller agreed to allow a 4.50 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,510. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,150. The loader operator is paid an annual salary of $9,240. The cost of the company's theft insurance policy increased by $2,280 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $5,200. Required Determine the amount to be capitalized in an 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.) Costs that are to be capitalized: List price Total costs $ 0
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