Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $122.060. The seller agreed to allow a 4.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,560. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $970 The loader operator is paid an annual salary of $43.320 The cost of the company's theft insurance policy increased by $2,110 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $14,800. 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.) Costs that are to be capitalized List price Total costs Required Information [The following information applies to the questions displayed below] At the beginning of 2018. Copeland Drugstore purchased a new computer system for $225,000. It is expected to have a five-year life and a $35,000 salvage value. Required o. Compute the depreciation for each of the five years, assuming that the company uses (1) Straight-line depreciation Straight-Line depreciation (2) Double-declining-balance depreciation (Leove no cells blank be certain to enter "o" wherever required) Double-Declining Balance Yeart Year 2 Years Year 4 Years O Required Information [The following information applies to the questions displayed below.) At the beginning of 2018, Copeland Drugstore purchased a new computer system for $225,000. It is expected to have a five-year life and a $35,000 salvage value, b. Record the purchase of the computer system and the depreciation expense for the first year under straight-line and double- declining balance methods in a financial statements model like the following one. (In the Cash Flow column, indicate whether the Item is an operating activity (OA), an Investing activity (1A), a financing activity (FA) and net change in cash (NC). If an element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign.) Balance Sheet COPELAND DRUG STORE Horizontal Statements Model Income Statement Stockholders Equity Net Revenue Expenses - Retained Income Earnings Assets Statement of Cash Flows Cash Book Value of Computer System Straight-Line Depreciation Double-Declining-Balance Depreciation
