Brief Exercise 10-4

Pharoah Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,848,000 on March 1, $1,248,000 on June 1, and $3,019,800 on December 31. Pharoah Company borrowed $1,112,400 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,326,800 note payable and an 11%, 4-year, $3,400,300 note payable. Compute avoidable interest for Pharoah Company. Use the weighted-average interest rate for interest capitalization purposes. (Round percentages to 2 decimal places, e.g. 2.51% and final answer to 0 decimal places, e.g. 5,275.)

Avoidable interest

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*Please i want to get the answers with every single detial of how did we get the final answer. thank you!