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1. CBA Company needs to capitalize on interest costs during construction, Actual interest incurre...

1. CBA Company needs to capitalize on interest costs during construction, Actual interest incurred is $20,000. Avoidable interest is $25,000. How much should CBA company capitalize?

a. $5,000 b. $20,000 c. $25,000 d. $45,000

2. Transaction 1 has commercial substance. XYZ Company exchanges one asset for another asset and there is a $4,000 loss. Transaction 2 lacks commercial substance. XYZ Company exchanges one asset for another asset and there is a $5,000 gain. At the time of exchange, Transaction 1 should have a(an) ________ and Transaction 2 should have a(an) __________.

a. immediate recognized loss, immediately recognized gain
b. immediately recognized loss, deferred gain
c. deferred loss, immediately recognized gain
d. deferred loss, deferred gain

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Answer #1

fxen datae que sion ¥ 5,000 Ao able lesest

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