1. The cost of constructing a new parking lot at the company's office building would be classified as: a. Building b. Equipment c. Land d. Land Improvement 2. Braxwell Corporation acquired the following assets associated with a manufacturing facility for a lump-sum price of $9,000,000. According to independent appraisals, the fair values were $4,000,000, $2,000,000, $3,000,000, and $1,000,000 for the building, patent, land, and equipment, respectively. The initial value of the patent would be: 3. Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Assuming that the exchange has commercial substance, record the transaction: 4. On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 September 1, 2018 December 31, 2018 March 31, 2019 September 30, 2019 $ 300,000 $ 450,000 $ 450,000 $ 450,000 $ 300,000 Dreamworld had a $5,000,000 construction loan outstanding for the entire construction period. The rate on the construction loan was 12%. Dreamworld's capitalized interest in 2018 was