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On March 1, Jennifer Co. began construction of a small building. The following expenditures were incurred for construction: March 1 $310,500 April 1 269,000 May

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

March 1 $310,500
April 1 269,000
May 1 720,000
June 1 1,101,000
July 1 391,000

The building was completed and occupied on July 1. To help pay for construction $210,500 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $2,000,000, 10% note issued two years ago.

Calculate the weighted-average accumulated expenditures. (Do not leave any answer field blank. Enter 0 for amounts.)

Date Expenditures Capitalization Period Weighted-Average Accumulated Expenditure
March 1 $310,500 01/122/123/124/125/126/127/128/129/1210/1211/1212/12 $
April 1 269,000 01/122/123/124/125/126/127/128/129/1210/1211/1212/12
May 1 720,000 01/122/123/124/125/126/127/128/129/1210/1211/1212/12
June 1 1,101,000 01/122/123/124/125/126/127/128/129/1210/1211/1212/12
July 1 391,000 01/122/123/124/125/126/127/128/129/1210/1211/1212/12
$

Calculate avoidable interest. (Round answer to 0 decimal places, e.g. 12,515.)

Avoidable interest $

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