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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
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 $880,000 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 | $ | 1,810,000 |
Costs to dismantle old chair lift | 30,400 | |
Cash received for sale used chair lift | 181,000 | |
Shipping costs for delivery | 19,660 | |
Landscape architect fees, grading expansion hill | 7,560 | |
Permit costs | 5,080 | |
Clearing trees/grading land for expansion | 46,500 | |
Installation of concrete bases for chair lift | 100,000 | |
Helicopter rental to install towers for chair lift | 88,000 | |
Labour installation ski lift | 290,000 | |
Training employees on maintenance and operation | 8,900 | |
Testing of chair lift | 28,600 | |
Interest costs on loan for construction | 66,000 | |
General overhead costs | 32,800 | |
Annual routine maintenance | 48,200 | |
Purchase tools required for annual maintenance | 81,800 | |
Required: Calculate the total cost for each asset:
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