79 T. Ch10 Assignment 1 (1) 7. During 2020, Bass Corporation constructed assets costing $4,000,000. The weightedaverage accumulated expenditures on these assets during 2020 was $2,400,000. To help pay for construction, $1,760,000 was borrowed at 10% on January 1, 2020, and funds not needed for construction were temporarily invested in short-term securities, yielding $36,000 in interest revenue. Other than the construction funds borrowed the only other debt outstanding during the year was a $2,000,000. 10-year, 9 note payable dated January 1, 2014. What is the amount of interest that should be capitalized by Bass during 2020? 8. Hardin Company received $120,000 in cash and a used computer with a fair value of $360,000 from Page Corporation for Hardin Company's existing computer having a fair value of $480,000 and an undepreciated cost of $450,000 recorded on its books. The transaction has no commercial substance. How much gain should Hardin recognize on this exchange, and at what amount should the acquired computer be recorded, respectively? 9-On December 1, Miser Corporation exchanged 6,000 shares of its $25 par value common stock held in treasury for a parcel of land to be held for a future plant site. The treasury shares were acquired by Miser at a cost of $40 per share, and on the exchange date the common shares of Miser had a fair value of $per share. Miser received $18,000 for seiling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at 10-On December 1, 2020, Kelso Company acquired new equipment in exchange for old equipment that it had acquired in 2017. The old equipment was purchased for $210,000 and had a book value of $79,800. On the date of the exchange, the old equipment had a fair value of $84,000. In addition, Kelso paid $273,000 cash for the new equipment, which had a list price of $378,000. The exchange lacked commercial substance. At what amount 1 should Kelso record the new equipment for financial accounting purposes? 11-Equipment that cost $600,000 and has accumulated depreciation of $475.000 is exchanged for equipment with a fair value of $240,000 and $60,000 cash is received. The exchange lacked