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Coronado Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditure were $1,620,000 on March 1, $1,080,000 on
Coronado Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditure were $1,620,000 on March 1, $1,080,000 on June 1, and $2,700,000 on December 31. Coronado Company borrowed $900,000 on March 1 on a 5-year, 10 % note to help finance construction of the building. In addition, t company had outstanding all year a 12%, 5-year, $1,800,000 note payable and an 11%, 4-year, $3,150,000 note payable. Compute avoidable interest for Coronado Company. Use the weighted-average interest rate for interest capitalization purposes. (Round "Weighted-average interest rate" to 4 decimal places, e.g. 0.2152 and final answer to O decimal places, e.g. 5,275.) Avoidable interest s 230727
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