Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase

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Trinkle Co., Inc. made several purchases of long-term assets in Year 1. The details of each purchase are presented here. 

New Office Equipment
1. List price: $60,000; terms: 2/10 n/30; paid within discount period.
2. Transportation-in: $1,500.
3. Installation: $2,500.
4. Cost to repair damage during unloading: $650.
5. Routine maintenance cost after six months: $350.

Basket Purchase of Copier, Computer, and Scanner for $30,000 with Fair Market Values
1. Copier, $22,000.
2. Computer, $10,000.
3. Scanner, $8,000.

Land for New Warehouse with an Old Building Torn Down
1. Purchase price, $250,000.
2. Demolition of building, $18,000.
3. Lumber sold from old building, $6,000.
4. Grading in preparation for new building, $22,000.
5. Construction of new building, $510,000.


Required
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

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Related Book For  book-img-for-question

Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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