ACC 304 All Assignments ACC 304 All Assignments | Page 149

d. Capitalize interest costs equal to the prime interest rate times the
estimated cost of the asset being constructed.
S43. Which of the following nonmonetary exchange transactions
represents a culmination of the earning process?
a. Exchange of assets with no difference in future cash flows.
b. Exchange of products by companies in the same line of business
with no difference in future cash flows.
c. Exchange of assets with a difference in future cash flows.
d. Exchange of an equivalent interest in similar productive assets that
causes the companies involved to remain in essentially the same
economic position.
S44. When boot is involved in an exchange having commercial
substance.
a. gains or losses are recognized in their entirely.