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Business, 27.11.2019 02:31 eswi9731

On january 1, 2020, swifty, inc. signed a fixed-price contract to have builder associates construct a major plant facility at a cost of $4,108,000. it was estimated that it would take 3 years to complete the project. also on january 1, 2020, to finance the construction cost, swifty borrowed $4,108,000 payable in 10 annual installments of $410,800, plus interest at the rate of 10%. during 2020, swifty made deposit and progress payments totaling $1,540,500 under the contract; the weighted-average amount of accumulated expenditures was $821,600 for the year. the excess borrowed funds were invested in short-term securities, from which swifty realized investment income of $254,300.

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