Business, 23.10.2019 21:00 leilaford2003
Southwest milling co. purchased a front-end loader to move stacks of lumber. the loader had a list price of $140,000. the seller agreed to allow a 4 percent discount because southwest milling paid cash. delivery terms were fob shipping point. freight cost amounted to $1,200. southwest milling had to hire a specialist to calibrate the loader. the specialist’s fee was $1,800. the loader operator is paid an annual salary of $60,000. the cost of the company’s theft insurance policy increased by $800 per year as a result of acquiring the loader. the loader had a four-year useful life and an expected salvage value of $6,000.
determine the amount to be capitalized in the asset account for the purchase of the front-end loader. (round your answers to the nearest whole dollar. amounts to be deducted should be indicated with minus sign.)
Answers: 1
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Southwest milling co. purchased a front-end loader to move stacks of lumber. the loader had a list p...
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