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Batman Inc. is constructing a building. Construction began on January 1, 2020 and was completed on December 31, 2020. All of Batman Inc.s debt was
Batman Inc. is constructing a building. Construction began on January 1, 2020 and was completed on December 31, 2020. All of Batman Inc.s debt was outstanding for all of 2020. Batman Inc. provides the following information:
Item | Amount | Rate |
---|---|---|
Weighted-average accumulated expenditures | $105,000 | N/A |
5-year construction loan | $176,000 | 8% |
10-year bond | $328,000 | 10% |
20-year bond | $492,000 | 15% |
What is the avoidable interest for Batman Inc. in 2020?
$13,650
$14,080
$23,310
$8,400
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