Floyd Company made several purchases of long term assets in 2016
Floyd Company made several purchases of long-term assets in 2016. The details of each purchase are presented here.
New Office Equipment
1. List price: $50,000; terms: 1/10 n/30; paid within the discount period.
2. Transportation-in: $1,200.
3. Installation: $1,000.
4. Cost to repair damage during unloading: $700.
5. Routine maintenance cost after eight months: $240.
Basket Purchase of Office Furniture, Copier, Computers, and Laser Printers for $70,000 with Fair Market Values
1. Office furniture, $48,000.
2. Copier, $12,000.
3. Computers and printers, $20,000.
Land for New Headquarters with Old Barn Torn Down
1. Purchase price, $100,000.
2. Demolition of barn, $7,000.
3. Lumber sold from old barn, $2,000.
4. Grading in preparation for new building, $11,000.
5. Construction of new building, $310,000.
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.
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