Southwest Milling Company purchased a front$-$end loader to move stacks of lumber. The loader had a list price of $$118,040.$ The seller

agreed to allow a $5\mathrm{.}00$ percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost

amounted to $$2,530.$ Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $$1,040.$ The loader

operator is paid an annual salary of $$10,590.$ The cost of the company's theft insurance policy increased by $$1,910$ per year as a result

of acquiring the loader. The loader had a four$-$year useful life and an expected salvage value of $$14,200.$

Required

a$.$ Determine the amount to be capitalized in an asset account for the purchase of the loader.

b$.$ Record the purchase in general journal format.

Complete this question by entering your answers in the tabs below.

Determine the amount to be capitalized in an asset account for the purchase of the loader. $($Round your answers to the

nearest whole dollar. Amounts to be deducted should be indicated with minus sign.$)$