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Blue Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,052,000 on March 1, $1,200,000 on
Blue Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,052,000 on March 1, $1,200,000 on June 1 , and $3,003,000 on December 31 . Blue Company borrowed $1,035.000 on March 1 on a 5 year, 12% note to help finance construction of the building In addition, the company had outstanding all year a 10%,5 year, $2,316,000 note payable and an 11%,4 year, 53,194,000 note payable. Compute avoidable interest for Blue Company. Use the weighted average interest rate for interest capitalization purposes. (Round weighted. average interest rate to 4 decimal places eg. 0.2152 and finol answer to 0 decimal places, es. 5,275.) Avoidable interest
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