Question
BlueCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,620,000on March 1, $1,080,000on June 1, and
BlueCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,620,000on March 1, $1,080,000on June 1, and $2,700,000on December 31.
BlueCompany borrowed $900,000on March 1 on a5-year,10% note to help finance construction of the building. In addition, the company had outstanding all year a12%,5-year, $1,800,000note payable and an11%,4-year, $3,150,000note payable. Compute avoidable interest forBlueCompany. Use the weighted-average interest rate for interest capitalization purposes.(Round "Weighted-average interest rate" to 4 decimal places, e.g. 2.5125 and final answer to 0 decimal places, e.g. 5,275.)
what is Avoidable interest is $
from intermediate accounting I 17 e chapter 10
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