#2 (1 pt.) On November 1, 2013, Shalla Company contracted Pfeifer Construction Co. to construct a building for $1,500,000. Shalla made the following payments to the construction company during 2014. Jan 1 --> $500,000 April 1 --> $800,000 May 31 --> $400,000

August 1 --> $400,000

December 31 --> $120,000

Pfeifer Construction completed the building, ready for occupancy, on December 31, 2014. Shalla had the following debt outstanding at December 31, 2014. Specific Construction Debt 1. 12%, 3-year note to finance purchase of land and construction of the building, dated December 31, 2013, with interest payable annually on December 31: $1,500,000 Other Debit:

2. 10%, 5-year notes payable, dated December 31, 2010, with interest payable annually on December 31: $800,000 3. 13%, 10-year bonds issued December 31, 2009, with interest payable annually on December 31: $600,000

a. Compute the weighted average accumulated expenditures for 2014

Jan .1 --> Amount, Fraction of year, Weighted Average expenditure ? Apr. 1 --> Amount, Fraction of year, Weighted Average expenditure ?

May 31 --> Amount, Fraction of year, Weighted Average expenditure ?

Aug. 1 --> Amount, Fraction of year, Weighted Average expenditure ?

Dec. 31 --> Amount, Fraction of year, Weighted Average expenditure ?

Totals: Weighted Average total ? b. Avoidable Interest: Weighted Average expenditure, Interest rate, Avoidable interest

Weighted Average expenditure, Interest rate, Avoidable interest

Totals = Avoidable Interest? c. Weighted Ave. Interest for Other Debt Debt Amount, Interest Rate, Interest Amount Debt Amount, Interest Rate, Interest Amount

Totals: Weighted Average. Interest: (Totals interest amount/ total debt amount)