Montgomery Industries spent $600,000 in 2017 on a construction project to build a library. Montgomery also capitalized $30,000 of interest on the project in 2015. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2018. Additional expenditures in 2018 were as follows: $$\begin{array} { l r }
\text { Feb. 28 } & \$ 90,000 \
\text { Apr. 30 } & 180,000 \
\text { Jul. 1 } & 36,000 \
\text { Sept. 30 } & 64,000
\end{array}$$ Required:
Determine the completed cost of the library. Show supporting computations.

Question

Montgomery Industries spent $600,000 in 2017 on a construction project to build a library. Montgomery also capitalized $30,000 of interest on the project in 2015. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2018. Additional expenditures in 2018 were as follows: $$\begin{array} { l r } 
\text { Feb. 28 } & \$ 90,000 \
\text { Apr. 30 } & 180,000 \
\text { Jul. 1 } & 36,000 \
\text { Sept. 30 } & 64,000
\end{array}$$ Required:
Determine the completed cost of the library. Show supporting computations.

Quizplus · Accepted Answer

The Answer of Montgomery Industries spent $600,000 in 2017 on a construction project to build a library. Montgomery also capitalized $30,000 of interest on the project in 2015. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2018. Additional expenditures in 2018 were as follows: $$\begin{array} { l r } 
\text { Feb. 28 } & \$ 90,000 \
\text { Apr. 30 } & 180,000 \
\text { Jul. 1 } & 36,000 \
\text { Sept. 30 } & 64,000
\end{array}$$ Required:
Determine the completed cost of the library. Show supporting computations.

Montgomery Industries Spent $600,000 in 2017 on a Construction Project