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Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Company purchased...

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Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Company purchased a front-end loader to move stacks of fumber. The loader had a list price of $116,550. The seller agreed to allow a 5.50 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,240. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $870. The loader operator is paid an annual salary of $21,260. The cost of the company's theft insurance policy increased by $2.120 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $7,400. 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 indicated with minus sign

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