Answer:
$54,000
Explanation:
Average accumulated expenditure can be determined by calculating the weighted average expenditure of each bond based on the numbers of month each bond is outstanding.
2016
As per given data
January 1, 2016 $300,000
September 1, 2016 $450,000
December 31, 2016 $450,000
Expenditures
As the bonds have different outstanding periods in the year, so we have to calculate the weighted average expenditure based on the numbers of months each bond outstanding within 2016.
January 1, 2016 $300,000 x 12/12 x 12% = $36,000
September 1, 2016 $450,000 x 4/12 x 12% = $18,000
December 31, 2016 $450,000 x 0/12 x 12% = <u>$0 </u>
Total Expenditure <u>$54,000 </u>
