1. Presented below is information related to equipment owned by Pujols Company at December 31, 2015. Cost Accumulated depreciation to date Value-in-use Fair value less cost of disposal 10,000,000 1,000,000 8,000,000 4,800,000 Assume that Pujols will continue to use this asset in the future. As of December 31, 2015, the equipment has a remaining useful life of 4 years Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2015. 2. Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2015, Hamilton began work under contract which provided for a contract price of 2,400,000. Other details follow: Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year Instructions 2015 640,000 2016 1,425,000 960,000 -0- 420,000 1,680,000 350,000 1,500,000 (a) What portion of the total contract price would be recognized as revenue in 2015? In 2016? 3. On January 1, 2013, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2014. Construction expenditures for 2013, which were incurred evenly throughout the year, totaled $8,000,000. Marjlee had the following debt obligations which were outstanding during all of 2013: Construction loan, 12% Long-term note, 9% Long-term note, 6% Required: $1,500,000 2,000,000 4,000,000 Calculate the amount of interest capitalized in 2013 for the building using the specific interest method