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Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6400000 on March 1, $5280000 on
Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6400000 on March 1, $5280000 on June 1, and $8000000 on December 31. Arlington Company borrowed $3200000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6400000 note payable and an 11%, 4-year, $12000000 note payable.
What is the actual interest for Arlington Company?
a. $2344000
b. $2379200
c. $1960000
d. $939220
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