Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $115,090. The seller agreed to allow a 6.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,270. Southwest Milling had to hire a specialist to calibrate the loader. The specialists fee was $1,150. The loader operator is paid an annual salary of $43,940. The cost of the companys theft insurance policy increased by $2,350 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $12,000