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Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $118,750. 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 $118,750. The seller agreed to allow a 6.00 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,120. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $750. The loader operator is paid an annual salary of $34,490. The cost of the company's theft insurance policy increased by $2,150 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $10,000. 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
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