Reference no: EM132752142
Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were €2,400,000 on March 1, €1,980,000 on June 1, and €3,000,000 on December 31. Arlington Company borrowed €1,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, €2,400,000 note payable and an 11%, 4-year, €4,500,000 note payable.
Problem 1: What are the weighted-average accumulated expenditures?
Option 1: €4,380,000
Option 2: €7,380,000
Option 3: €3,155,000
Option 4: €3,690,000