Montgomery Industries Spent $600,000 in 2017 on a Construction Project

question 67

Essay

Montgomery Industries spent $600,000 in 2017 on a construction project to build a library. Montgomery also capitalized $30,000 of interest on the project in 2015. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2018. Additional expenditures in 2018 were as follows: $$\begin{array} { l r } \text { Feb. 28 } & \$ 90,000 \\\text { Apr. 30 } & 180,000 \\\text { Jul. 1 } & 36,000 \\\text { Sept. 30 } & 64,000\end{array}$$ Required:
Determine the completed cost of the library. Show supporting computations.

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Definitions:

Single-Price Monopolist

A monopolist that offers its product to all consumers at the same price.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different customers.

Consumer Surplus

The variance between the sum consumers are willing to pay for a product or service and the actual payment made.

Single-Price Monopolist

A monopolistic firm that offers its product or service at a single price to all its consumers, without price discrimination.