Emerson Enterprises is constructing a building. Construction began in 2016 and the building was completed December 31, 2016. Emerson made payments to the construction company of $600,000 on July 1, $1.800,000 on September 1, and $2,400,000 on December 31. What is the amount of weighted-average accumulated expenditures that provides the basis for determining capitalizable interest?
A. $900,000
B. $1,100,000
C. $1,200,000
D. $1,600,000
Answer:A
Emerson Enterprises is constructing a building. Construction began in 2016 and the building was completed December 31, 2016. Emerson made payments to the construction company of $600,000 on July 1, $1.800,000 on September 1, and $2,400,000 on December 31. What is the amount of weighted-average accumulated expenditures that provides the basis for determining capitalizable interest?
A. $900,000 B. $1,100,000 C. $1,200,000 D. $1,600,000