MarigoldCo. andCullumberCo., 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:

Marigold's LandCullumber's LandCost and book value$581400$331200Fair value based upon appraisal810000630900

The exchange was made, and based on the difference in appraised fair values,Cullumberpaid $179100toMarigold. The exchange lacked commercial substance.

Marigoldshould recognize a pre-tax gain on this exchange of

$0.

$228600.

$179100.

$50546.

2,ConcordCo. 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:

Concord's LandIvanhoe's LandCost and book value$546000$365000Fair value based upon appraisal726000641000

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

The new land should be recorded onIvanhoe's books at

$620000.

$705000.

$450000.

$365000.

3.On March 1, 2017,Concord Corporationpurchased land for an office site by paying $2740000cash.Concordbegan construction on the office building on March 1. The following expenditures were incurred for construction:

DateExpendituresMarch 1, 2017$1790000April 1, 20172530000May 1, 20174490000June 1, 20174880000

The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3560000was borrowed on March 1, 2017 on a9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2017 was a $1590000,12%, 6-year note payable dated January 1, 2017.

Assume the weighted-average accumulated expenditures for the construction project are $4360000. The amount of interest cost to be capitalized during 2017 is

$416400.

$130800.

$152600.

$170400.