What was the total weighted average accumulated expenditure

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Question - Venetian, Inc. decided to open a new retail outlet in a neighboring town. On January 1, 2019, Venetian took out a $400,000 construction loan and purchased the land on January 15, 2019. Construction for the new store began on March 1, 2019. The company expected to complete construction in early 2020. Information about 2019 construction expenditures and details about Venetian's debt structure are included below.

Venetian Construction Expenditures-2019

Land purchase

Jan. 15, 2019

$200,000

Payment for excavation and foundation work

Mar. 31, 2019

50,000

Payment for framing, electrical, plumbing, etc.

June 30, 2019

350,000

Payment for drywall, fixtures, etc.

Dec. 31, 2019

150,000

 

Venetian Debt Structure-2019

Construction loan for retail building project

Jan. 1, 2019

$400,000

6%

Note payable

Mar. 31, 2018

350,000

8%

Bond payable

Oct. 31, 2018

250,000

10%

Required - What was the total weighted average accumulated expenditure for the Venetian project? What was the weighted average interest rate on general debt (non-project specific)?

A) $379,167; 8.83%

B) $404,167; 9.00%

C) $379,167: 7.70%

D) $550,000: 8.83%

Reference no: EM133062271

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