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:

Investor

An individual or entity that allocates resources with the expectation of achieving a financial return.

Creditor

An individual or entity that is owed money or has a claim to the assets of a debtor.

Statute Prohibits

A regulation enacted by a legislative body that forbids certain actions or conduct.

Expressly Prohibits

Clearly and specifically forbids an action or condition, typically in a legal context or regulation.