Lam Company purchased the following long-term assets. Determine the purchase cost of eachasset. (a) Ten computers: Purchase
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Lam Company purchased the following long-term assets. Determine the purchase cost of eachasset.
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(a) Ten computers: Purchase price Transportation costs Insurance during transportation Installation $60,000 500 100 800 Interest on loan to purchase computers 3,000 (b) Three acres of land: Purchase price Grading of land in preparation to build Planting of trees around border Fence on southern border $30,000 10,000 5,000 3,000 1,000 Tax assessment for sewer Legal fees related to purchase 900 (c) Five-thousand-square-foot building: Purchase price Real estate fees Land on which building is located Legal fees related to purchase Taxes related to purchase Interest on mortgage to buy building $102,000 5,000 10,000 600 800 300
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