Exercise A Algo Determining the cost of an asset LO
points
References
Southwest Milling Company purchased a frontend loader to move stacks of lumber. The loader had a list price of $ The seller agreed to allow a percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $ Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $ The loader operator is paid an annual salary of $ The cost of the company's theft insurance policy increased by $ per year as a result of acquiring the loader. The loader had a fouryear useful life and an expected salvage value of $
Required
Determine the amount to be capitalized in the asset account for the purchase of the frontend loader.
Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign.
tableCosts that are to be capitalized:,List price,Total costs,
