1.Beth hires Howsen in 1/1/11 to construct a building. Payments to Howsen during 2011: The building is ready for use on 12/31/11. Actual debt for Beth consists of: Bonds payable, 12%, $4,000, issued 1/1/11 to help finance building construction. Bonds payable, 10%, $12,000 issued 7/1/11 for general purposes. The capitalized interest will be:

Select one:

a. $1,247

b. $1,190

c. $1,213

d. $1,365

e. $1,080

2.

Two independent companies, ABC Co. and XYZ Co., exchange buildings. The transaction lacks commercial substance. An appraiser was hired, and from his report and the companies' records, the following information was obtained: The exchange was made, and based on the difference in appraised value, XYZ Co. paid $15,000 to ABC Co. For financial reporting purposes, XYZ Co. should recognize a pre-tax gain on this exchange of:

Select one:

a. $0

b. $3,000

c. $15,000

d. $20,000

e. $35,000

I want only the right answer ASAP PLZ don't write the solution

DATE 1/1/11 9/1/11 AMOUNT $10,000 $4,000 Cost Accumulated Depreciation Fair value based upon appraisal ABC's Building $120,000 40,000 100,000 XYZ's Building $90,000 40,000 85,000