11) An asset is being constructed for an enterprise's own use. The asset has been financed with a specific new borrowing. The interest cost incurred as a result of expenditures for the asset during the construction period is a, a part of the cost of the asset to be allocated over its estimated useful life. b. interest expense in the construction period. c. recorded as a deferred charge and amortized over the term of the borrowing. d. a part of the cost of the asset to be allocated over the term of the borrowing used to finance the construction of the asset. 12)Which of the following statements correctly describes the proper accounting for nonmonetary exchanges that are deemed to have commercial substance? a. It defers any gains and losses. b. It defers loosed to the extent of any gains. c. It recognizes gains and losses immediately, d. It defers gains and recognizes losses immediately. 13) Hoyle Company traded machinery with an original cost of $780,000 and accumulated depreciation of 20,000. It received in exchange from Durier Company a machine with a fair value of $800,000. Hoyle also paid cash of $80,000 in the exchange. What amount of gain or loss should Hoyle recognize on the exchange (assuming lack of commercial substance)? a $80,000 gain b. so c. $4,000 loss d. $40,000 loss