Question

Trinkle Company made several purchases of long-term assets in 2018. The details of each purchase are presented here.

New Office Equipment

1. List price: $44,500; terms: 2/10, n/30; paid within the discount period.

2. Transportation-in: $840.

3. Installation: $480.

4. Cost to repair damage during unloading: $524.

5. Routine maintenance cost after eight months: $280.

Basket Purchase of Copier, Computer, and Scanner for $52,700 with Fair Market Values

1. Copier, $23,495.

2. Computer, $12,065.

3. Scanner, $27,940.

Land for New Warehouse with an Old Building Torn Down

1. Purchase price, $79,700.

2. Demolition of building, $4,620.

3. Lumber sold from old building, $1,490.

4. Grading in preparation for new building, $7,000.

5. Construction of new building, $277,000.

Required

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

Office equipment:

	Asset Allocated Costs Office equipment

Basket purchase:

	Asset Allocated Costs Copier Computer Scanner Total

Land and building:

	Asset Allocated Costs Cost of land Construction costs Total cost