  By exploiting the technique of Sutherland's species, introduced in
\cite{DOMO-RC}, we derive the exact spectrum and partition function of a 1D
extended Hubbard model. The model describes a competition between dynamics of
single carriers and short-radius pairs, as a function of on-site Coulomb
repulsion ($U$) and filling ($\rho$). We provide the temperature dependence of
chemical potential, compressibility, local magnetic moment, and specific heat.
In particular the latter turns out to exhibit two peaks, both related to
`charge' degrees of freedom. Their origin and behavior are analyzed in terms of
kinetic and potential energy, both across the metal-insulator transition point
and in the strong coupling regime.
