Doggy Co. began construction of a new cutter for the U.S. Coast Guard on January...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Doggy Co. began construction of a new cutter for the U.S. Coast Guard on January 1, 20X1 and completed construction of the ship on October 31, 20X2. To finance construction, Doggy took out an $8,000,000, 2-year, 6% construction loan on February 1, 20X1. Interest on the loan was to be paid annually on the anniversary date of the loan. Doggy has no other outstanding interest-bearing debt. Doggy made the following expenditures in conjunction with this construction project:
Date
Amount
2/1/20X1
$
1,050,000
3/31/20X1
900,000
6/1/20X1
750,000
10/1/20X1
1,000,000
12/31/20X1
600,000
3/1/20X2
900,000
9/1/20X2
250,000
What is the amount of Doggys cumulative weighted average expenditures during 20X2 related to the cutter project?
Multiple Choice
$4,341,250
$5,450,000
$4,941,667
$2,966,667
THE ANSWER HAS TO BE ONE OF THE MULTIPLE CHOICE NUMBERS
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
