Reference no: EM132611837

On March 1, 2017, Mauritania Ltd. purchased land for $270,000 cash, which they intend to use for their new head office. Construction on the office building began on March 1. The following expenditures were incurred for construction:

Date                       Expenditures

March 1, 2017         $450,000

April 1, 2017          252,000

May 1, 2017           450,000

June 1, 201                7720,000

Question 1: The office building was completed and ready for occupancy on July 1. To help pay for construction, Mauritania borrowed $360,000 on March 1, 2017 on a 9%, three-year note payable. Other than this note, the only other debt outstanding during 2017 was a $150,000, 10%, six-year note payable dated January 1, 2016. The weighted-average accumulated expenditures on the construction project during 2017 were

Option 1: $258,000.

Option 2: $348,000.

Option 3: $156,000.

Option 4: $1,467,000.