Wonder Mountain Company operates a snow sports resort for skiers and snowboarders. The company has recently decided to replace an existing old chair lift with a new high-speed quad chair and expand the hill to allow for increased capacity. The old chair lift was a $822,000 asset on the books, 90% depreciated. The work was completed from April to November. Wonder Mountain incurred the following costs for the expansion:
Invoice price high-speed quad chair lift | $ | 1,694,000 |
Costs to dismantle old chair lift | 32,200 | |
Cash received for sale used chair lift | 169,400 | |
Shipping costs for delivery | 20,740 | |
Landscape architect fees, grading expansion hill | 8,340 | |
Permit costs | 5,620 | |
Clearing trees/grading land for expansion | 48,500 | |
Installation of concrete bases for chair lift | 105,000 | |
Helicopter rental to install towers for chair lift | 92,000 | |
Labour installation ski lift | 310,000 | |
Training employees on maintenance and operation | 9,600 | |
Testing of chair lift | 30,400 | |
Interest costs on loan for construction | 69,000 | |
General overhead costs | 34,200 | |
Annual routine maintenance | 49,800 | |
Purchase tools required for annual maintenance | 85,200 | |
Required:
Calculate the total cost for each asset:
land
tools
ski lift
Wonder Mountain Company operates a snow sports resort for skiers and snowboarders. The company has recently...