Answer:
- Weighted average accumulated expenditures were
$ 3,600,000
Explanation:
The Weighted average accumulated expenditures are calculated considering the payments made to the contructing company weighted by the time that the constructing company hold the money divided by the period of contruction.
Please see the details below:
Payment Date Expenditure Cap Period Weight Weighted Exp
07/01/2020 $3,000,000 6 (12-6) 0,50 $1,500,000
09/01/2020 $6,300,000 4 (12-8) 0,33 $2,100,000
12/31/2020 $6,000,000 0 - 0- 0-
TOTAL $15,300,000 $3,600,000
Capitalization Period: Example: 12 Months - 6 Months transcurred.
12/31/2020 - ending of contruction
07/01/2020 - The moment went the payment was made, 6 months since the beginning of the construction.
