$165,000. It demolished an old building on the property and began construction on a new 8 building that was completed on October 2nd of the same year. Costs incurred during this period are: 6. 10 11 Architect's fees S 10.000 12 Construction costs 275.000 13 Demolition of the old building 9,500 14 Legal fees for title investigation and purchase contract 5,500 15 16 The company sold salvaged materials resulting from the demolition for $5,000. 17 At what amount should Barnett record the cost of the LAND and the new BUILDING, 19 respectively? 18 20

7. The Lionell Company acquired several small companies at the end of the year. Based on the acquisition the company reported the following intangible assets on its December 31, 2017 balance sheet: Patent $ 35.000 Tradename 40,000 Goodwill 125.000 2 3 a. The company's accountant determined the patent has an expected life of 10 years and no 14 expected residual value and that it will generate approximately equal benefits each year. The 15 company expects to use the tradename for the foreseeable future 2019 January 1 April 1 $ * 500,000 100,000 *Only includes construction costs incurred in January 2019. Amounts borrowed and outstanding: $1,000,000 at 9% borrowed specifically for the project $8,000,000 at 10% $6,000,000 at 11% Prepare the journal entries to record the interest capitalization for 2018 and 2019, respectively. (For interest calculations, use 2 decimal points) 4. The Lambert Company begins a two-year construction project on a new building on January 1. 2018. The following information is available: Capitalization period: January 1, 2018 - June 30, 2019 Expenditures related to the construction: 2018 January 1 $ 300,000 April 1 600,000 October 1 700,000 December 1 400,000 5 6 . 18 2019 January 1 April 1 $ 500.000 100.000 4. The Lambert Company begins a two-year construction project on a new building on Janu. 1, 2018. The following information is available: Capitalization period: January 1, 2018 - June 30, 2019 Expenditures related to the construction: 2018 January 1 $ 300,000 April 1 600,000 October 1 700,000 December 1 400,000 3 4 5 16 17 18 19 2019 January 1 3 $ 500,000 100,000 April 1 20