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Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment 1. List
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment 1. List price: $41,900; terms: 2/10 n/30; paid within discount period. 2. Transportation-in: $870. 3. Installation: $590. 4. Cost to repair damage during unloading: $692. 5. Routine maintenance cost after six months: $140. Basket Purchase of Copier, Computer, and Scanner for $49,000 with Fair Market Values 1. Copier, $24,190. 2. Computer, $6,490. 3. Scanner, $28,320. Land for New Warehouse with an Old Building Torn Down 1. Purchase price, $80,900. 2. Demolition of building, $5,000. 3. Lumber sold from old building, $2,650. 4. Grading in preparation for new building, $7,200. 5. Construction of new building, $277,000. Required In each of these cases, determine the amount of cost to be capitalized in the asset accounts. Land and building: Answer is complete but not entirely correct. $ Asset Cost of land Construction costs Total cost Allocated Costs 88,100 279,350 367,450 $
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