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1) What was avoidable interest in 2017? 2)What is interest expense in 2017? Part 1: On January 1, 2017, SJT Corp. made an initial investment

image text in transcribed1) What was avoidable interest in 2017?

2)What is interest expense in 2017?

Part 1: On January 1, 2017, SJT Corp. made an initial investment of $1,000,000 and construction began on a new factory plant. Construction was completed on December 31, 2017. The timing of construction expenses (required outlays) and all debt outstanding are provided below. Construction Expense Schedule Date Construction Cost 1/1/2017 $1,000,000 7/1/2017 $3,000,000 10/1/2017 $4,000,000 12/31/2017 $2,000,000 Debt Outstanding Debt Construction Loan #1 10 Year Bond issued at par 3 Year Notes Payable Date Initiated 1/1/2017 10/31/2010 12/31/2016 Amount $3,000,000 $3,000,000 $500,000 Interest Rate 6% 10% 6.5%

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