Question
On January 1, 2021, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2022. Expenditures
On January 1, 2021, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2022. Expenditures on the project were as follows:
| January 1, 2021 | $ | 336,000 | |
| September 1, 2021 | $ | 504,000 | |
| December 31, 2021 | $ | 504,000 | |
| March 31, 2022 | $ | 504,000 | |
| September 30, 2022 | $ | 336,000 | |
Dreamworld had $6,800,000 in 10% bonds outstanding through both years. The average accumulated expenditures for 2022 by the end of the construction period was:
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Canadian Income Taxation Planning And Decision Making
Authors: Joan Kitunen, William Buckwold
17th Edition 2014-2015 Version
1259094332, 978-1259094330
