Multiple Choice Indicate the BEST ans ice Indicate the BEST answer for each of the multiple choice questions on the answer sheet provided. 4 points each Xantha Cor a machine which cost $18.00 has annual depreciation of $3,000 and at 5/1/18 has accumulated depreciation of $15,000. On May 1. 2018, this machine is exchanged for an ,000. On May 1, 2018, this machine is exchanged for a new machine which a fair value of 6,000 with no cash boot paid. This transaction does not have commercial substance. The gain to be recorded on the exchange is A $5,000 gain. B. $3,000 gain C. $ 2,000 gain. D. $ 4,000 gain. ES 0 The new machine should be recorded at A. $3,000 B. $4,000 C. $5,000 D. $6,000. E. Some other amount 3. Assume the machine exchange transaction above does in fact have commercial substance. Provide the journal entry to record the exchange. When computing the amount of interest cost to be capitalized, the concept of "avoidable interest" refers to A. the total interest cost actually incurred. B. a cost of capital charge for stockholders' equity. C. that portion of average accumulated expenditures on which no interest cost was incurred. D. that portion of total interest cost which we assume would not have been incurred if expenditures for asset construction had not been made. E. both B and D 5. On April 1. Port Corporation purchased for $880,000 a tract of land on which was located a warehouse and an office building. The following data were collected concerning the property: Seller's quote of Current appraised current relative value value Land $212.400 $180,000 Office Building $672.600 $720,000 Total $885,000 $900,000 What is the appropriate amount that Port should record for the building? A $704,000 B. $688,800 C. $672,600 D. $720,000 E. $880,000