Question
Montgomery Industries spent $690,000 in 2020 on a construction project to build a library. Montgomery also capitalized $34,500 of interest on the project in 2020.
Montgomery Industries spent $690,000 in 2020 on a construction project to build a library. Montgomery also capitalized $34,500 of interest on the project in 2020. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2021. Additional expenditures in 2021 were as follows:
| Feb. 28 | $ | 98,100 | |
| Apr. 30 | 188,100 | ||
| Jul. 1 | 44,100 | ||
| Sept. 30 | 72,100 | ||
Required: Determine the completed cost of the library.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
4th edition
978-0073369709, 73369705, 78025370, 978-0077444846, 77444841, 978-0078025372
