FlintCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures
Fantastic news! We've Found the answer you've been seeking!
Question:
FlintCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $4,500,000on March 1, $3,000,000on June 1, and $7,500,000on December 31.
FlintCompany borrowed $2,500,000on 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, $5,000,000note payable and an11%,4-year, $8,750,000note payable. Compute avoidable interest forFlintCompany. 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 0 decimal places, e.g. 5,275.)
Posted Date: