Accounting for acquisition of assets including a basket purchase
Moon Co., Inc., made several purchases of long term assets in 2010. The details of each purchase are presented here.
New Office Equipment
1. List price: $60,000; terms: 2/10 n/30; paid within discount period.
2. Transportation in: $1,600.
3. Installation: $2,200.
4. Cost to repair damage during unloading: $1,000.
5. Routine maintenance cost after six months: $300.
Basket Purchase of Copier, Computer, and Scanner for $15,000 with Fair Market Values
1. Copier, $10,000.
2. Computer, $6,000.
3. Scanner, $4,000.
Land for New Warehouse with an Old Building Torn Down
1. Purchase price, $200,000.
2. Demolition of building, $10,000.
3. Lumber sold from old building, $7,000.
4. Grading in preparation for new building, $14,000.
5. Construction of new building, $500,000.
Required
In each of these cases, determine the amount of cost to be capitalized in the asset accounts.