Example ABC begins construction on a warehouse on 1/1/19 and completes on 12/31/19 Expenditures on DM, DL & MOH are as follows: 1/1/19 600,000 6/30/19 300,000 9/30/19 100,000 Debt outstanding during the construction period: 1/1/19 1/1/17 1/1/15 2 year note for Construction $500,000, 4% issued a 5 year note $200,000, 3% issued a 20 year bond payable $800,000, 6% 1. Calculation of WAAE (Weighted Average Accumulated Expenditures) 2. Calculation of Avoidable Interest WAAE Avoidable interest interest rate