Question
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. New Office Equipment List price:
Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here.
New Office Equipment
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List price: $42,500; terms: 2/10 n/30; paid within discount period.
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Transportation-in: $740.
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Installation: $420.
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Cost to repair damage during unloading: $453.
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Routine maintenance cost after eight months: $290.
Basket Purchase of Copier, Computer, and Scanner for $50,500 with Fair Market Values
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Copier, $21,315.
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Computer, $9,135.
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Scanner, $30,450.
Land for New Warehouse with an Old Building Torn Down
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Purchase price, $77,200.
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Demolition of building, $4,600.
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Lumber sold from old building, $1,610.
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Grading in preparation for new building, $8,200.
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Construction of new building, $213,000.
Required
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
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