f. On 8/1/18, Vargo decided to discontinue a segment of their business. The segment, which had a book value of $643,000 was sold for $513,000 on 12/1/19. The segment incurred a loss of $45,000 from operations from 8/1/19 to 12/01/19. All amounts are pre-tax g. Vargo pays their salespeople a commission of $2.75 per unit of tibed" sold. No commissions are paid on sales of "tibed". Vargo also had the following expenses/revenues during the year: Advertising expense $290,000 Administrative salaries $802,000 Sales salaries $490,000 President's salary $205,000 Insurance $52,000 Misc. office expenses $28,500 Revenue from leasing unused Building space $73,000 h. Early in 2019, Vargo engaged Wheeler Inc. to design and construct a new manufacturing facility. Construction began on March 1, 2019 and was completed on December 31, 2019. (no depreciation is needed) Vargo made the following payments to Wheeler, Inc. during 2019, Date Payment February 1, 2019 $280,000 August 31, 2019 $440,000 December 31, 2019 $300,000 In order to help finance the construction, Vargo issued the following during 2019. 1. $210,000 of 10-year, 8% bonds payable, issued at par on October 1, 2016, with interest payable annually on Oct 1. In addition to the 8% bonds payable, the only debt outstanding during 2019 was a $140,000, 11% note payable dated January 1, 2010 and due January 1, 2022, and a $230,000 8% note payable dated January 1, 2012 and due January 1, 2021. Interest on each is payable on January 1. Compute the amounts of each of the following (show computations): 1. Weighted average accumulated expenditures qualifying for capitalization of interest cost. 2. Avoidable interest incurred during 2019. 3. Total amount of interest cost to be capitalized during 2019 and interest expense for 2019. Prepare the journal entry to record interest capitalized/expensed i. Vargo had an average of 325,000 shares of common stock outstanding. Vargo has no preferred stock. j. Vargo obtained a patent on 3/1/14 for $96000 with a legal life remining if 14 years that was estimated to have a useful life of 12 years. The future cashflows from the patent are estimated to be $44000 as of 12/31/19 and the fair value is estimated to be $37000. Make any entries necessary for the patent during 2019