Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,070. The seller agreed to allow a 5.50 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,480. Southwest Milling had to hire a specialist to calibrate the loader. The specialists fee was $790. The loader operator is paid an annual salary of $15,810. The cost of the companys theft insurance policy increased by $2,390 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $6,600. Required a. Determine the amount to be capitalized in an asset account for.Record purchase of equipment for cash.