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can you help me to solve this question please ? On January 1, 2022, Lawrence Co. began construction of a building to be used as
can you help me to solve this question please ? On January 1, 2022, Lawrence Co. began construction of a building to be used as its office headquarters. The building is expected to be completed on December 31, 2022. Expenditures on this project during 2022 were as follows: January 1 April 1 June 1 October 31 $180,000 270,000 237,000 156,000 On Jan. 1, 2022, the company obtained a $480,000 specific construction loan with an 8% interest rate The loan was outstanding during the entire construction period. The company's other interest-bearing debts included two long-term notes of $200,000 and $600,000 with interest rates of 12% and 9%, respectively. Both notes were outstanding during the entire construction period. Instruction (a) Determine the amount of interest capitalized for 2022. Please show your work (Le the weighted average accumulated expenditure, the actual interest, the weighted average interest rate, and the avoidable interest) to support your final answer. Please round the WA interest rate to four decimal places when necessary. Answer: The amount of ingerest capitalized for 2022 is (b) Regardless your answer in (a), determine the amount of avoidable interest for 2022 assuming that the weighted average accumulated expenditure is $320,000 (other things being equal). Answer: The amount of avoidable interest for 2022 is
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