ABC Company decided to construct a new building to be used as its company headquarters.On January 1, 2017, construction began on the project.On that same day, the company borrowed $4 million specifically for the project at an interest rate of 5%.The project was completed on June 30, 2018.Expenditures related to the project in 2017 are displayed below:

Date

Amount

1/1/17

$1,200,000

3/31/17

$1,000,000

5/1/17

$2,400,000

8/31/17

$1,800,000

12/31/17

$1,100,000

In addition to the specific borrowing, ABC had two other loans outstanding for the entire year:

$1,500,000 @ 9%

$4,500,000 @ 6%

Determine the weighted average interest rate of the other loans outstanding.

Determine the average accumulated expenditures for 2017.

Determine the amount of avoidable interest for 2017.

Determine the amount of interest capitalized for 2017.

At the end of 12/31/17, what is the total cost capitalized for the building?