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Business, 26.02.2020 04:31 AmyGonzalez1385

Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $123,530. The seller agreed to allow a 5.75 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,310. Southwest Milling had to hire a specialist to calibrate the loader. The specialist’s fee was $920. The loader operator is paid an annual salary of $30,860. The cost of the company’s theft insurance policy increased by $1,980 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $7,200.

Determine the amount to be capitalized in an assest accound for the purchase of the front end loader.

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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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