Accounting for acquisition of assets including a basket purchaseLO 2Khan Company made seve...

Accounting for acquisition of assets including a basket purchase

LO 2

Khan Company made several purchases of long-term assets in 2011. The details of each purchase are presented here.

NEW Office Equipment

1. List price: $40,000; terms: 1/10 n/30: paid within the discount period,

2. Transportation-in: $800.

3. Installation: $500.

4. Cost to repair damage during unloading: $500.

5. Routine maintenance cost after eight months: $120.

Basket Purchase of Office Furniture, Copier, Computers, and Laser Printers for $50,000 with Fair Market Values

1. Office furniture, $24,000.

2. Copier.$9,000.

3. Computers and printers. $27,000.

Land for New Headquarters with Old Barn Torn Down

1. Purchase price. $80,000.

2. Demolition of barn. $5,000.

3. Lumber sold from old barn. $2,000.

4. Grading in preparation for new building. $8,000.

5. Construction of new building. $250.000.

Required

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