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Headland Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,620,000 on March 1, $1,080,000 on
Headland Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,620,000 on March 1, $1,080,000 on June 1, and $2,700,000 on December 31. Headland Company borrowed $900,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the 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 Headland Company. Use the weighted-average interest rate for interest capitalization purposes. (Round "Weighted-average interest rate to 4 decimal places, eg. 0.2152 and final answer to O decimal places, eg 5,275) Avoidable interest S eTextbook and Media Save for Later Attempts: 1 of 7 used Submit
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