Question
I need help with the following:Bonita Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,812,000on
I need help with the following:Bonita Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,812,000on March 1, $1,212,000on June 1, and $3,014,300on December 31.
Bonita Company borrowed $1,070,800on March 1 on a5-year,12% note to help finance construction of the building. In addition, the company had outstanding all year a10%,5-year, $2,030,800note payable and an11%,4-year, $3,170,100note payable. Compute avoidable interest for Bonita Company. Use the weighted-average interest rate for interest capitalization purposes. (Round percentages to 2 decimal places, e.g. 2.51% and final answer to 0 decimal places, e.g. 5,275.)
I'm positive I set it up right but its wrong, yet I can't see where the problem is
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