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Calculate the average accumulated expenditures

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Problem - A company begins construction of an asset an January 1, 2016, and completes construction on December 31, 2016. The company pays the following amounts related to construction:

$1,000,000 January 1

$2,000,000 July 1

$1,000,000 December 1

Required - Calculate the average accumulated expenditures for the purpose of capitalizing interest.

Reference no: EM132865472

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