Business, 21.02.2020 19:43 volleyballfun24
Fountain Co. is constructing an office building for its own use. Fountain started the two-year construction project on April 1, year 1, at which point the interest capitalization period began. Fountain made the following payments in year 1 related to the construction of the building:
- April 1 Payment to architect for building plans $ 30,000
- July 1 Progress payment to contractor 60,000
- October 1 Progress payment to contractor 150,000
For the purpose of capitalizing interest, what is Fountain's weighted average accumulated expenditures for the year ended December31, year 1?
a.$80,000
b.$105,000
c.$120,000
d.$240,000
Answers: 2
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Fountain Co. is constructing an office building for its own use. Fountain started the two-year const...
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