Question 1 1 pts Early in 2019, Desert, Co. finalized plans to expand operations. The first stage was completed on January 19th with the purchase of a tract of land to be used as the location for their new office complex. The land and existing building were purchased for $750,000, paying cash. Title search, title insurance, back property taxes and other closing costs totaling $20,000 were paid at closing. During February, the old building was demolished at a cost of $70,000, and an additional $50,000 was paid to clear and grade the land. Salvaged materials from the demolished building were sold for proceeds of $10,000. Construction of the new office complex began on March 1 and was completed on November 30, 2019. Construction expenditures paid to sub-contractors were made as follows: March 1 June 1 $ 900,000 $1,200,000 $1,500,000 $1,800,000 Sept 1 Nov 1 Desert borrowed a $2,000,000, 8%, 2-year note on February 1st to help finance construction. Interest will be paid annually. The company's only other outstanding debt during all of 2019 was a $3,100,000, 9%, 10-year note payable. In December, the company purchased equipment and furniture for a lump-sum price of $500,000. The fair values of the equipment and furniture were $455,000 and $245,000, respectively. Given this information, determine the Historical Cost of the Land. Using the information presented in Question 1 above, determine the Historical Cost of the building after taking into consideration the capitalization of interest. Question 3 1 pts Using the information presented in Question 1 above, determine the Interest Expense that Desert would report on their Income Statement for the year ended December 31, 2019. Question 4 1 pts Using the information in Question 1 above, assume instead that Desert's only other outstanding debt during 2019 was a $500,000, 9%, three year note (i.e. all other information remains unchanged but Desert no longer has $3,000,000 of other non- specific borrowings; only $500,000 of non-specific debt). Determine the Avoidable Interest from this construction project under this scenario. Question 5 2 pts Using the information presented in Question 1 above, determine the Historical Cost that should be established on Desert's Balance Sheet for... the Equipment the Furniture Question 1 1 pts Early in 2019, Desert, Co. finalized plans to expand operations. The first stage was completed on January 19th with the purchase of a tract of land to be used as the location for their new office complex. The land and existing building were purchased for $750,000, paying cash. Title search, title insurance, back property taxes and other closing costs totaling $20,000 were paid at closing. During February, the old building was demolished at a cost of $70,000, and an additional $50,000 was paid to clear and grade the land. Salvaged materials from the demolished building were sold for proceeds of $10,000. Construction of the new office complex began on March 1 and was completed on November 30, 2019. Construction expenditures paid to sub-contractors were made as follows: March 1 June 1 $ 900,000 $1,200,000 $1,500,000 $1,800,000 Sept 1 Nov 1 Desert borrowed a $2,000,000, 8%, 2-year note on February 1st to help finance construction. Interest will be paid annually. The company's only other outstanding debt during all of 2019 was a $3,100,000, 9%, 10-year note payable. In December, the company purchased equipment and furniture for a lump-sum price of $500,000. The fair values of the equipment and furniture were $455,000 and $245,000, respectively. Given this information, determine the Historical Cost of the Land. Using the information presented in Question 1 above, determine the Historical Cost of the building after taking into consideration the capitalization of interest. Question 3 1 pts Using the information presented in Question 1 above, determine the Interest Expense that Desert would report on their Income Statement for the year ended December 31, 2019. Question 4 1 pts Using the information in Question 1 above, assume instead that Desert's only other outstanding debt during 2019 was a $500,000, 9%, three year note (i.e. all other information remains unchanged but Desert no longer has $3,000,000 of other non- specific borrowings; only $500,000 of non-specific debt). Determine the Avoidable Interest from this construction project under this scenario. Question 5 2 pts Using the information presented in Question 1 above, determine the Historical Cost that should be established on Desert's Balance Sheet for... the Equipment the Furniture