Question 11 4 pts During 20x1, Pitchfork Company constructed assets costing $4,000,000. The WAAE on these assets during 20x1 was $2,400,000. The capitalization period spanned from March 1st to November 30th. To help pay for construction, a one- year, $1,760,000 note was borrowed at 10% on January 1, 20x1. Funds not needed for construction were temporarily invested in short-term securities, yielding $36,000 in interest revenue. The only other debt outstanding during the year was a $2,000,000, 10-year, 9% note payable. What amount of interest should be capitalized by Pitchfork during 20x1? $229,200 $233,600 $176,000 $356,000 Question 12 4 pts During 20x1, Pitchfork Company constructed assets costing $5,350,000. The WAAE on these assets during 20x1 was $2,800,000. The capitalization period spanned from February 1st to November 30th. To help pay for construction, a 2- year, $1,860,000 note was borrowed at 10% on January 1, 20x1. Funds not needed for construction were temporarily invested in short-term securities, yielding $24,000 in interest revenue. The only other debt outstanding during the year was a $1,000,000, 10-year, 9% note payable. What amount of interest expense should Pitchfork report on their 20x1 Income Statement? $31,000 $98,500 $67,500 $95,400 Question 13 4 pts On December 1st, a company purchased new equipment to be used in their operations. To finance this purchase, the company made a cash down payment of $25,000 and issued a $100,000 non-interest bearing note requiring annual payments of P&I for the next 5 years. The first payment is due on December 1st of next year. An 8% APR interest rate was imputed. In addition, the company paid $2,200 for the cost of delivering the new equipment and installation costs were $3,700. During installation, uninsured damages were incurred, and the cost of repairs was $1,300. Determine the Historical Cost of the equipment. The factor for PV of $1 (8%, 5n) is .681, and PV of $1 (4%, 10n) is.675. The factor for PVOA (8%, 5n) is 3.99 and PVOA (4%, 10n) is 8.11. $110.700 $112,000 $ 99,000 $100,300 Question 14 4 pts Pitchfork, Company and Beach, Company are exchanging machines. The exchange lacks commercial substance. The machine given up by Pitchfork, Co. by Beach, Co. has a book value of $120,000. Pitchfork company pays $20,000 cash in the exchange. What amount should Pitchfork, Co. record as the historical cost of the new machine? $92,000 $110,000 $90,000 $95,276 Question 15 4 pts Pitchfork, Company exchanges equipment with an original cost of $150,000 and Accumulated Depreciation of $25,000 for a similar piece of equipment with a fair value of $110,000 and $42,000 cash is received. The exchange lacks commercial substance. Determine what Pitchfork should record as the Original Cost of the NEW equipment and the amount of the gain for this exchange, respectively. New Equipment Gain $110,000 new equipment, $27,000 gain $90,461 new equipment, $7,461 gain $110,000 new equipment, $7,461 gain $83,000 new equipment, $ 0 gain Question 11 4 pts During 20x1, Pitchfork Company constructed assets costing $4,000,000. The WAAE on these assets during 20x1 was $2,400,000. The capitalization period spanned from March 1st to November 30th. To help pay for construction, a one- year, $1,760,000 note was borrowed at 10% on January 1, 20x1. Funds not needed for construction were temporarily invested in short-term securities, yielding $36,000 in interest revenue. The only other debt outstanding during the year was a $2,000,000, 10-year, 9% note payable. What amount of interest should be capitalized by Pitchfork during 20x1? $229,200 $233,600 $176,000 $356,000 Question 12 4 pts During 20x1, Pitchfork Company constructed assets costing $5,350,000. The WAAE on these assets during 20x1 was $2,800,000. The capitalization period spanned from February 1st to November 30th. To help pay for construction, a 2- year, $1,860,000 note was borrowed at 10% on January 1, 20x1. Funds not needed for construction were temporarily invested in short-term securities, yielding $24,000 in interest revenue. The only other debt outstanding during the year was a $1,000,000, 10-year, 9% note payable. What amount of interest expense should Pitchfork report on their 20x1 Income Statement? $31,000 $98,500 $67,500 $95,400 Question 13 4 pts On December 1st, a company purchased new equipment to be used in their operations. To finance this purchase, the company made a cash down payment of $25,000 and issued a $100,000 non-interest bearing note requiring annual payments of P&I for the next 5 years. The first payment is due on December 1st of next year. An 8% APR interest rate was imputed. In addition, the company paid $2,200 for the cost of delivering the new equipment and installation costs were $3,700. During installation, uninsured damages were incurred, and the cost of repairs was $1,300. Determine the Historical Cost of the equipment. The factor for PV of $1 (8%, 5n) is .681, and PV of $1 (4%, 10n) is.675. The factor for PVOA (8%, 5n) is 3.99 and PVOA (4%, 10n) is 8.11. $110.700 $112,000 $ 99,000 $100,300 Question 14 4 pts Pitchfork, Company and Beach, Company are exchanging machines. The exchange lacks commercial substance. The machine given up by Pitchfork, Co. by Beach, Co. has a book value of $120,000. Pitchfork company pays $20,000 cash in the exchange. What amount should Pitchfork, Co. record as the historical cost of the new machine? $92,000 $110,000 $90,000 $95,276 Question 15 4 pts Pitchfork, Company exchanges equipment with an original cost of $150,000 and Accumulated Depreciation of $25,000 for a similar piece of equipment with a fair value of $110,000 and $42,000 cash is received. The exchange lacks commercial substance. Determine what Pitchfork should record as the Original Cost of the NEW equipment and the amount of the gain for this exchange, respectively. New Equipment Gain $110,000 new equipment, $27,000 gain $90,461 new equipment, $7,461 gain $110,000 new equipment, $7,461 gain $83,000 new equipment, $ 0 gain