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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Definitions:

Regular Income

Consistent earnings received by an individual or entity, typically through employment, investments, or business operations.

Installment Plans

Payment methods that allow customers to purchase goods by making a series of payments over time.

Repayment Plans

Agreed upon schedules between lenders and borrowers that outline how a debt will be paid back over time, often including interest rates and payment amounts.

Frivolous

Used to describe actions or claims that lack any serious purpose or value, often in a legal context.