Montgomery Industries spent $600,000 in 2008 on a construction project to build a library. Montgomery also capitalized $30,000 of interest on the project in 2008. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2009. Additional expenditures in 2009 were as follows:
Required:
Determine the completed cost of the library. Show supporting computations.
$\begin{array}{lr}
\text { Feb. 28 } & \$ 90,000 \
\text { Apr. 30 } & 180,000 \
\text { Jul. 1 } & 36,000 \
\text { Sept. 30 } & 64,000
\end{array}$

Question

Montgomery Industries spent $600,000 in 2008 on a construction project to build a library. Montgomery also capitalized $30,000 of interest on the project in 2008. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2009. Additional expenditures in 2009 were as follows:
Required:
Determine the completed cost of the library. Show supporting computations.
 $\begin{array}{lr}
\text { Feb. 28 } & \$ 90,000 \
\text { Apr. 30 } & 180,000 \
\text { Jul. 1 } & 36,000 \
\text { Sept. 30 } & 64,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Montgomery Industries spent $600,000 in 2008 on a construction project to build a library. Montgomery also capitalized $30,000 of interest on the project in 2008. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2009. Additional expenditures in 2009 were as follows:
Required:
Determine the completed cost of the library. Show supporting computations.
 $\begin{array}{lr}
\text { Feb. 28 } & \$ 90,000 \
\text { Apr. 30 } & 180,000 \
\text { Jul. 1 } & 36,000 \
\text { Sept. 30 } & 64,000
\end{array}$

Montgomery Industries Spent $600,000 in 2008 on a Construction Project