JAR has a note payable to Bank of America (hereinafter BOA) for $50,000 at an annual interest rate of 3%. The five-year note is dated 4/30/19 and pays interest annually every 4/30. The interest on this note subsequent to 4/30 has not yet been accrued and must be used in the interest capitalization calculation along with other specific and non-specific debt.

JAR made the following cash disbursements for the new warehouse construction in 2020. On 8/1/20 $100,000; on 9/30/20 $165,000; on 11/1/20 $80,000. For this and the above problem, you must first calculate weighted average accumulated expenditures from the disbursement, then calculate actual and avoidable interest, the lesser of the two can be capitalized to the new warehouse account: Warehouse in progress. Construction on the warehouse was started on 7/1/20.