answer all the below questions. need step by step and explain

3. Where in the FASB Accounting Standards Codication is guidance for how a company should present the following in their financial statements. Remember to use the standard format of referencing the codication: ASE aaa-bb-cc-d where aaa is the topic, bb is the subtopic, cc is the section, and d is the paragraph. a. What is the primary basis of accounting for inventories and how is such generally defined? [2 points] b. Inventory cost may be determined under several assumptions as to the flow of cost factors. What are the 3 cost flow assumptions provided by the ASC? What is the major objective in selecting a method? [2 points] 4. Nonmonetary Exchange. [10 points] B Company exchanged machinery with an appraised value of $4,680,000, a recorded cost of $7,200,000 and accumulated depreciation of $3,600,000 with L Company for machinery L Company owns. The machinery has an appraised value of $4,520,000, a recorded cost of $8,640,000, and accumulated depreciation of $4,752,000. L Company also gave B Company $160,000 in the exchange. Assume depreciation has already been updated. 4.1 Prepare the entries on both companies' general ledger assuming that the exchange had commercial substance. {Round all computations to the nearest dollar.) 4.2 Prepare the entries on both companies' general ledger assuming that the exchange lacked commercial substance. {Round all computations to the nearest dollar.) 5. Capitalization of Interest. [14 points] Early in 2020, D Corporation engaged 2 Inc. to design and construct a complete modernization of D's manufacturing facility. Construction was begun on June 1, 2020 and was completed on December 31, 2020. D Corporation made the following payments to Z Inc. during 2020: Date Payment June 1, 2020 $2,000,000 August 31, 2020 3,000,000 December 31, 2020 2,500,000 In order to help nance the construction, D Corporation issued the following during 2020: 1. $1,700,000 of 10-year, 9% bonds payable, issued at par on May 31, 2020, with interest payable annually on May 31. 2. 300,000 shares of no-par common stock, issued at $10 per share on October 1, 2020. In addition to the 9% bonds payable, the only debt outstanding during 2017 was a $425,000, 12% note payable dated January 1, 2016 and due January 1, 2023, with interest payable annually on January 1. 5.1 Compute the amounts of each ofthe following {show computations}: A. Weighted-average accumulated expenditures qualifying for capitalization of interest cost. B. Avoidable interest incurred during 2020. C. Total amount of interest cost to be capitalized during 2020. 6. Inventory Errors. [15 points] Indicate in each of the spaces provided the effect of the described errors on the various elements of a company's December 31 financial statements. Assume a periodic inventory system. Assume gross profit is 25% of sales. Hint: Analyze using the "Inventory Formula" and prepare the journal entry to correct the error; then use the correcting journal entry to understand the impact on the financial statements. Use the following codes: O = amount is overstated | U = amount is understated | NE = no effect End of Cost of Year Accounts Accounts Goods Retained Receivable Inventory Payable Sales Sole Earnings 6.1 Dec 31 inventory count excluded goods located in rented warehouse. 6.2 Goods held on consignment in our warehouse were included in Dec 31 inventory count and recorded as purchase. 6.3 Goods in transit as of Dec 31 shipped "FOB Shipping Point" were not recorded as a sale and were included in ending inventory. 6.4 Goods shipped "FOB Shipping Point" prior to Dec 31 and appropriately excluded from Dec 31 inventory but sale was not recorded until Jan 5. 6.5 Goods in transit as of Dec 31 shipped "FOB Destination" by supplier were recorded as a purchase but were excluded from Dec 31 inventory