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help please Waterway Company is constructing a building Construction began on February 1 and was completed on December 31. Expenditures were $3,600,000 on March 1,
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Waterway Company is constructing a building Construction began on February 1 and was completed on December 31. Expenditures were $3,600,000 on March 1, $2,400,000 on June 1, and $6,000,000 on December 31. Waterway Company borrowed $2,000,000 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 $4,000,000 note payable and an 11%, 4-year. $7,000,000 note payable. Compute avoidable interest for Waterway Company. Use the weighted average interest rate for interest capitalization purposes. (Round "Weighted average interest rate" to 4 decimal places, es. 0.2152 and final answer to decimal places, eg. 5,275) Avoidable interest $ Step by Step Solution
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