CAP Shese 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 should Kelso record the new equipment for financial accounting purposes? for 11-Equipment that cost $600,000 and has accumulated depreciation of $475,000 is exchanged equipment with a fair value of $240,000 and $60,000 cash is received. The exchange lacked commercial substance Instructions Prepare the entry for the exchange. Show a check of the amount recorded for the new Equipment 12. During 2020, Barden Building Company constructed various assets at a total cost of $14.700,000 The weighted average accumulated expenditures on assets qualifying for capitalization of Interest during 2020 were $9,800,000. The company had the following debt outstanding at December 31 2020 1.10%, 5-year note to finance construction of various assets, dated January 1, 2020, with interest payable annually on January 1 $6,300,000 2. 12%, ten-year bonds issued at par on December 31, 2014, with interest payable annually on December 317,000,000 3.94. 3-year note payable, dated January 1, 2019, with interest payable annually on January 13,500,000 Instructions Compute the amounts of each of the following (show computations) 1. Avoidable interest 2 Total interest to be capitalized during 2020