I attached Word Document with 3 problems. Need to show calculation, not just answers.

ACTP 5007 - Worksheet 2 Problem 1 Intangibles On January 1, 2011, Kramer Corp spent $250,000 developing a patent and $90,000 in legal fees to secure the patent. Kramer estimated its productive life to be 15 years, although its legal life was 20 years. On January 1, 2012, Kramer spent $5,600 in legal fees in defense of the patent and won the suit. On December 31, 2014, one of Kramer's competitors developed a patent that significantly rivaled Kramer's product. Kramer's CFO determined that the the fair value of the patent is $66,000 and future expected cash flows from Kramer's patent would be $63,000. Instructions 1 How much is the book value of the patent at Kramer's year end on December 31, 2012? 2 What was the book value of the patent as of December 31, 2015? 3 What journal entries, if any, did Kramer make on December 31, 2014? Problem 2 - Exchanges On January 1, 2012, Wallace Company and Diggs Company agree to exchange assets with the following characteristics: Wallace Company Diggs Company $50,000 $60,000 Accumulated Depreciation 30,000 40,000 Fair market value 24,000 30,000 Original Cost Wallace Company has agreed to pay $6,000 cash to Diggs Company in the exchange. Instructions 1 Assume that the exchange of assets has commercial substance. Make the necessary journal entries to record the exchange for both parties. 2 Assume that the exchange of assets does not have commercial substance. Make the necessary journal entries to record the exchange for both parties. Problem 3 - Capitalization of Interest Early in 2011, Parker Corp. engaged Gable, Inc. to design and construct a complete modernization of Parker's manufacturing facility. Construction began on June 1, 2011 and was completed on December 31, 2011. Parker made the following payments to Gable, Inc. during 2011: Payment Date Amount June 1, 2011 $2,400,000 September 30, 2011 7,800,000 December 31, 2011 4,000,000 To help finance the construction, Parker issued the following during 2011: * $1,500,000, 10year, 10 percent note payable issued on June 1, 2011, with interest payable annually on May 31. Other debt held by the company during 2011 was as follows: * A $4,000,000, 12percent note payable dated January 1, 2008, due January 1, 2016, with interest payable annually on January 1. * A 30day, 9 percent loan dated July 1, 2011, in the amount of $1,000,000 Instructions 1 Compute the weightedaverage accumulated expenditure qualifying for capitalization of interest cost. 2 Compute the avoidable interest. 3 The building has a salvage value of $800,000 and a useful life of 50 years. What is the book value of the building as of 12/31/2012