Which of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset?

Interest cost is being incurred.

Expenditures for the assets have been made.

The interest rate is equal to or greater than the company's cost of capital.

Activities that are necessary to get the asset ready for its intended use are in progress.

The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance is usually recorded at

the fair value of the asset given up, and a gain but not a loss may be recognized.

either the fair value of the asset given up or the asset received, whichever one results in the largest gain (smallest loss) to the company.

the fair value of the asset given up, and a gain or loss is recognized.

the fair value of the asset received if it is equally reliable as the fair value of the asset given up.