3. Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment were $37,000 (original cost of $90,500 less accumulated depreciation of $53,500) and $49,500, respectively. Calaveras also paid $7,500 in cash. Assume the exchange has commercial substance.

At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange?

Value of pickup trucks	?

? ?

4. A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $580,000; March 31, $680,000; June 30, $480,000; October 30, $840,000. To help finance construction, the company arranged a 7% construction loan on January 1 for $860,000. The companys other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 8% and 6%, respectively. Assuming the company uses the specific interest method, calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).)

Date	Expenditure		Weight			Average
January 1	?		?		=	?
March 31	?		?		=	?
June 30	?		?		=	?
October 30	?		?		=	?
Accumulated expenditures	$0					$0
	Average		Interest Rate			Capitalized Interest
Average accumulated expenditures	$0
?	?		?	%	=	$0
?	?		?	%	=	0 $0

5. A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $510,000; March 31, $610,000; June 30, $410,000; October 30, $630,000. To help finance construction, the company arranged a 8% construction loan on January 1 for $720,000. The companys other borrowings, outstanding for the whole year, consisted of a $2 million loan and a $4 million note with interest rates of 10% and 7%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).)

Date	Expenditure		Weight			Average
January 1, 2018	?		?		=	?
March 31, 2018	?		?		=	?
June 30, 2018	?		?		=	?
October 30, 2018	?		?		=	?
Accumulated expenditures	$0					$0
	Average		Interest Rate			Capitalized Interest
Average accumulated expenditures	$0		?	%	=	$0