1. The Balance Sheet for Desert, Co. dated December 31, 2020, has a wine bottling machine for its vineyard division with a book value of $616,968. Desert uses the straight-line method for depreciation and has recorded depreciation at $24,838 per year. On April 1, 2021, the machine is completely destroyed by an earthquake. Fortunately, the insurance company responded with an immediate settlement in the amount of $600,538. What is the amount of loss Desert would record on its 2021 Income Statement for the involuntary disposal of this machine? *round your answer to the nearest $1 **record your answer in absolute value (do not in

2. Desert Company is building a new manufacturing facility. The following occurred during the same year: - On February 1st, Desert took out a $1 million 4% loan to fund the construction project - On February 1st, Desert made its first payment to the construction company in the amount of $250,000 - On January 15th, construction began Construction on the manufacturing facility was complete on October 31st. How many months long is the capitalization period?

3. During 2020, Desert Company constructed assets costing $4,000,000. The WAAE on these assets during 2020 was $2,400,000. The capitalization period spanned from March 1st to November 30th. To help pay for construction, $1,760,000 was borrowed at 10% on January 1, 2020. 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 is the amount of actual interest recorded by Desert during 2020? Group of answer choices

a $320,000 b$312,000 c $356,000 d$229,200