Creon Corp. is constructing an asset for its own use during the second quarter of a calendar year. The following qualifying expenditures related to the asset were made during the year: $60,000 on April 1, $90,000 on June 1, and $100,000 uniformly during the period. The average amount of accumulated expenditures for this quarterly accounting period was

(A) $250,000

(B) $190,000

(C) $140,000

(D) $130,000

Question

Business

Makenna Hendrix

6 July, 21:01

Creon Corp. is constructing an asset for its own use during the second quarter of a calendar year. The following qualifying expenditures related to the asset were made during the year: $60,000 on April 1, $90,000 on June 1, and $100,000 uniformly during the period. The average amount of accumulated expenditures for this quarterly accounting period was

(A) $250,000

(B) $190,000

(C) $140,000

(D) $130,000

+5

Answers (1)

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Dashawn · Answer 1

Answer: Option C

Explanation: The accumulated expenditure for the second quarter could be calculated by considering the expenditure as per the basis of time perios:-

For april = $60,000 * (3/3) = $60,000

For june = $90,000 * (1/3) = $30,000

For rest = $100,000 * (1.5/3) = $50,000

Hence the total accumlated depreciation is $140,000.