Can You Explain please! Southwest Milling Company purchased a front-end loader to...
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Can You Explain please!
Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $122,060. The seller agreed to allow a 4.50 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,340. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,48. The loader operator is poid an annual salary of $37,310. The cost of the company's theft insurance policy increased by $2,480 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value or $12,000. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicoted with minus sign
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