8 5 points eBook 01 Hint Ask Exercise 8-4A (Static) Determining the cost of an asset LO 8-1 Southwest Milling Company 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. Transportation 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. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costs

Exercise 8-4A (Static) Determining the cost of an asset LO 8-1 Southwest Miling Company purchased a front-end looder to move stacks of lumbet, The loader had a tist price of $140.000. The selle agreed to allow a 4 percent descount becouse Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $1,200. Southwest Milling had to hire a specialist to calorate the loadec. The 5pecialists fee was $1,800, The looder 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 fouf-year useful life and an expected solvage value of $6,000. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Amounts to be deducted should be indicated with minus sign