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Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $123,800. The seller agreed to allow
Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $123,800. 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 $2,580. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $960. The loader operator is paid an annual salary of $6,150. The cost of the company's theft insurance policy increased by $1,770 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $8,900. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: 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
Southwest Miling Company purchased a front-end loader to move stacks of tumber. The looder had a list price of $123,800. The seller ingreed to allow a 4.50 percent discount becouse Southwest Milling puid cach Delwery terms were FOB shipping point. Transportation cost amounted to $2,580. Southwest Milling had to hire a specialist to colibrote the loader The specialint's fee was $960. The loader operator is paid an annual salary of $6,150. The cost of the company's theft insurance policy increased by $1,770 per year as a result of acquiring the looder. The looder hod a four-year useful life and an expected salvage value of $8,900 Required: Determine the amount to be capitalized in an asset account for the purchose of the front-end loodet Note: Round your answers to the nearest whole doller. Amounts to be deducted should be indicated with minus sign Step by Step Solution
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