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

question 40

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 actual interest cost incurred during 2020 was

• A) $ 27,000.
• B) $ 39,500.
• C) $ 42,000.
• D) $ 47,400.

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Definitions:

Expected Number

The calculated average or mean value of a numerical random variable, representing what one expects to happen over numerous trials.

Probability Distribution

A statistical function detailing all potential values and their probabilities for a random variable within a specific range.

Probability Distribution

A mathematical function which calculates the likelihood of various possible results in an experiment.

Blackjack

A casino card game where players try to achieve a hand value as close to 21 as possible without exceeding it.