On March 1, Brookmeadow Corp. began construction of a small building. The following expenditures were incurred for construction:

Mar. 1$75,000

Apr. 184,000

May 1180,000

June 1300,000

July 1100,000

The building was completed and occupied on July 1. To help pay for construction, $ 60,000 was borrowed on March 1 on a 10%, three-year note payable. The only other debt outstanding during the year was a $ 500,000, 8% note issued two years ago.

Required

1.Calculate the weighted-average accumulated expenditures.

2.Calculate avoidable interest.