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Hanson Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $2, 028,000 on January 1, $1,

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Hanson Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $2, 028,000 on January 1, $1, 212,000 on June 1, on December 31 Hanson Company borrowed $1,003, 300 on January 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year 9%, 5-year, $2, 241, 200 note payable and an 10%, 4-year, $3, 716, 400 note payable. Compute avoidable interest for Hanson Company. Use the weighted-average interest rate for interest capitalization purposes. Compute the weighted average expenditures for the construction period. Compute the weighted average interest rate for the general debt (the 9% note and 10% note). Compute actual interest. Compute avoidable interest. How much interest would be capitalized

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