During 2017,Waterway Industriesincurred weighted-average accumulated expenditures of $1750000during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2017 was a $2020000,12%, 5-year note payable dated January 1, 2017. What is the amount of interest that should be capitalized byWaterwayduring 2017?

$0.

$32400.

$210000.

$242400.

2.Two independent companies,SheffieldCo. andIvanhoeCo., are in the home building business. Each owns a tract of land held for development, but each would prefer to build on the other's land. They agree to exchange their land. An appraiser was hired, and from her report and the companies' records, the following information was obtained:

Sheffield's LandIvanhoe's LandCost and book value$553000$372000Fair value based upon appraisal733000648000

The exchange was made, and based on the difference in appraised fair values,Ivanhoepaid $85000toSheffield. The exchange lacked commercial substance.

The new land should be recorded onIvanhoe's books at

$712000.

$372000.

$457000.

$627000.

3.WaterwayInc. andPharoahCo. have an exchange with no commercial substance. The asset given up byWaterwayInc. has a book value of $62000and a fair value of $97000. The asset given up byPharoahCo. has a book value of $127000and a fair value of $112000. Boot of $32000is received byPharoahCo.

What amount should Pharoah Co. record for the asset received?

$112000

$94000

$127000

$97000