Use the Following Information for Questions

question 1

Multiple Choice

Use the following information for questions
On March 1, 2010, Beck Company purchased land for an office site by paying $270,000 cash.Beck began construction on the office building on March 1.The following expenditures were incurred for construction:

The office was completed and ready for occupancy on July 1.To help pay for construction,
$360,000 was borrowed on March 1, 2010 on a nine percent, three-year note payable.Other than the construction note, the only debt outstanding during 2010 was a $150,000, 10%, six-year note
payable dated January 1, 2010.
-The weighted-average accumulated expenditures on the construction project during 2010 were

• A)$258,000.
• B)$1,467,000.
• C)$156,000.
• D)$348,000.

---

Definitions:

Commercial Unit

Under the UCC, any unit of goods that is treated by commercial usage as a single whole. It may, for example, be a single article or a set of articles such as a dozen, bale, gross, or carload.

Accepted only

A condition or specification that only the accepted or approved items, proposals, or bids are considered, excluding all others.

Anticipatory Repudiation

The declaration by a party involved in a contract that they do not intend to fulfill their future obligations as agreed, even before the time to perform has arrived.

UCC

The Uniform Commercial Code details a complete collection of regulations that oversee every commercial transaction across the United States.