Question
Beerbo Inc. is constructing a building. Construction began on February 1, 2020 and was completed on December 31, 2020. Expenditures were $18,000 on March 1,
Beerbo Inc. is constructing a building. Construction began on February 1, 2020 and was completed on December 31, 2020. Expenditures were $18,000 on March 1, 2020; $12,000 on June 1, 2020; and $30,000 on December 31, 2020. Round numbers to nearest decimal (e.g. 12.3% = 12%).
A) For interest capitalization purposes, what percentage of the year was the June 1st expenditure outstanding?
B) For interest capitalization purposes, what percentage of the year was the December 31st expenditure outstanding?
C) For interest capitalization purposes, calculate the weighted-average accumulated expenditures total.
do not round "percentage of year" calculations, as you did in the previous two questions
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