10-3 Ayayai Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,052,000on March 1, $1,200,000on June 1, and $3,007,200on December 31. Ayayai Company borrowed $1,042,720on March 1 on a5-year,13% note to help finance construction of the building. In addition, the company had outstanding all year a9%,5-year, $2,039,800note payable and an10%,4-year, $3,462,500note payable. Compute the weighted-average interest rate used for interest capitalization purposes.(Round answer to 2 decimal places, e.g. 7.58%.)

Weighted-average interest rate

%

10-4

Sheffield Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,088,000on March 1, $1,236,000on June 1, and $3,075,700on December 31.

Sheffield Company borrowed $1,054,700on March 1 on a5-year,13% note to help finance construction of the building. In addition, the company had outstanding all year a9%,5-year, $2,216,900note payable and an10%,4-year, $3,161,900note payable. Compute avoidable interest for Sheffield Company. Use the weighted-average interest rate for interest capitalization purposes.(Round percentages to 2 decimal places, e.g. 2.51% and final answer to 0 decimal places, e.g. 5,275.)

Avoidable interest

$

10-8 (Part Level Submission) On December 31, 2016, Ivanhoe Inc. borrowed $3,480,000at12% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: March 1, $417,600; June 1, $696,000; July 1, $1,740,000; December 1, $1,740,000. The building was completed in February 2018. Additional information is provided as follows.

1.	Other debt outstanding
10-year,13% bond, December 31, 2010, interest payable annually	$4,640,000
6-year,10% note, dated December 31, 2014, interest payable annually	$1,856,000
2.	March 1, 2017, expenditure included land costs of $174,000
3.	Interest revenue earned in 2017	$56,840

(a) Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building.

The amount of interest

$