Use the Following Information to Solve the Following Questions The Office Building Was Completed and Ready for Occupancy on

question 98

Multiple Choice

Use the following information to solve the following questions:
On March 1, 2020, Mauritania Ltd. purchased land for $ 270,000 cash, which they intend to use for their new head office. Construction on the office building began on March 1. The following expenditures were incurred for construction:
$$\begin{array} { l l } \text { Date } & \text { Expenditures } \\\text { March } 1,2020 &\$450,000\\\text { April } 1,2020 & \mathbf { 2 5 2 , 0 0 0 } \\\text { May } 1,2020 & 450,000 \\\text { June } 1,2020 & 720,000\end{array}$$ The office building was completed and ready for occupancy on July 1. To help pay for construction, Mauritania borrowed $ 360,000 on March 1, 2020, on a 9%, three-year note payable. Other than this note, the only other debt outstanding during 2020 was a $ 150,000, 10%, six-year note payable dated January 1, 2019.
-The weighted-average accumulated expenditures on the construction project during 2020 were

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

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Agency

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Legal Documents

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