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looking for AVOIDABLE INTEREST Novak Company is constructing a building. Construction began on February 1 and was completed on December 31 . Expenditures were $2,088,000
looking for AVOIDABLE INTEREST
Novak Company is constructing a building. Construction began on February 1 and was completed on December 31 . Expenditures were $2,088,000 on March 1, $1,236,000 on June 1, and $3,076,000 on December 31 . Novak Company borrowed $1,055,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%,5-year, $2,217,000 note payable and an 10%,4-year, $3,162,000 note payable. Compute avoidable interest for Novak Company. Use the weighted-average interest rate for interest capitalization purposes. (Round weighted. average interest rate to 4 decimal places, e.g. 0.2152 and final answer to 0 decimal places, e.g. 5. 275.) Avoidable interest $ Step by Step Solution
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