Wonder Mountain Company operates a snow sports resort for skiers and snowboarders. The company has recently decided to replace

an existing old chair lift with a new high$-$speed quad chair and expand the hill to allow for increased capacity. The chair lift was a

$$834,000$ asset on the books, $90\%$ depreciated. The work was completed from April to November. Wonder Mountain incurred the

following costs for the expansion:

Required:

Calculate the total cost for each asset:

Answer is complete but not entirely correct. Wonder Mountain Company operates a snow sports resort for skiers and snowboarders. The company has recently decided to replace an existing old chair lift with a new high$-$speed quad chair and expand the hill to allow for increased capacity. The chair lift was a $$834,000$ asset on the books, $90\%$ depreciated. The work was completed from April to November. Wonder Mountain incurred the following costs for the expansion:

Invoice price high$-$speed quad chair lift $ $1,718,000$

Costs to dismantle old chair lift $36,200$

Cash received for sale used chair lift $171,800$

Shipping costs for delivery $20,200$

Landscape architect fees, grading expansion hill $7,950$

Permit costs $5,350$

Clearing trees$/$grading land for expansion $47,500$

Installation of concrete bases for chair lift $102,500$

Helicopter rental to install towers for chair lift $90,000$

Labour installation ski lift $300,000$

Training employees on maintenance and operation $9,250$

Testing of chair lift $29,500$

Interest costs on loan for construction $67,500$

General overhead costs $33,500$

Annual routine maintenance $49,000$

Purchase tools required for annual maintenance $83,500$

Required:

Calculate the total cost for each asset: