Your Company purchased an asset with a list price of $135,000 and received a 2% cash discount. The asset was

Your Company purchased an asset with a list price of $135,000 and received a 2% cash discount. The asset was delivered under terms FOB shipping point and the company paid freight costs of $1,500. Your Company paid $7,800 to have the asset installed. Insurance costs to protect the asset from fire and theft amounted to $2,400 for the first year of operations. The cost of routine maintenance for the year was $995. Calculate the cost capitalized in the asset account.

Leave a Reply

Your email address will not be published. Required fields are marked *