Messersmith Company Is Constructing a Building

question 96

Multiple Choice

Messersmith Company is constructing a building. Construction began in 2014 and the building was completed 12/31/14. Messersmith made payments to the construction company of $2,000,000 on 7/1, $4,200,000 on 9/1, and $4,000,000 on 12/31. Weighted-average accumulated expenditures were

• A) $2,050,000.
• B) $2,400,000.
• C) $6,200,000.
• D) $10,200,000.

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Definitions:

Market Equilibrium

The point at which the quantity demanded by consumers equals the quantity supplied by producers, resulting in no economic pressure to change the price.

Scarce Inputs

Resources or factors of production that are limited in supply, which constrains economic output and allocative efficiency.

Petroleum Production

The process of extracting crude oil from the earth and refining it into usable petroleum products.

Medical Care

The diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans through professional services.