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: $60,000; terms: 2/10, n/30; paid within the discount period.

2. Transportation-in: $1,500.

3.   Installation: $2,500.

4.   Cost to repair damage during unloading: $650.

5.   Routine maintenance cost after eight months: $350.

Basket Purchase of Copier, Computer, and Scanner for $30,000 with Fair Market Values
1.   Copier, $22,000.

2.   Computer, $10,000.

3.   Scanner, $8,000.

Land for New Warehouse with an Old Building Torn Down
1.   Purchase price, $250,000.

2.   Demolition of building, $18,000.

3.   Lumber sold from old building, $6,000.

4.   Grading in preparation for new building, $22,000.

5.   Construction of new building, $510,000.
Required
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.

Office Equipment      

         

	$
	___
	$           -

Note:  Indicate which items (including dollar amount) are not included and why.  

Basket Purchase

         Allocation is based on relative market values:

         

Asset	Fair Market Value	Percent FMV Value		Purchase Price		Allocated Costs
Copier	$	%	x	$	=	$
Computer		%	x		=
Scanner		%	x		=
Total	$	%				$

Land and Building

	Land___
	Building_

Answer 1