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Kobe Company began constructing a building for its own use on July 1,201. During 201, Kobe incurred interest of $350,000 on construction expenditures of $10,000,000

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Kobe Company began constructing a building for its own use on July 1,201. During 201, Kobe incurred interest of $350,000 on construction expenditures of $10,000,000 with 6% annual interest rate Required: 1. What is the avoidable interest? 2. What amount of interest should Kobe capitalize

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