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On March 1, Mocl Co. began construction of a small building. The following expenditures were incurred for construction: March 1 April 1 May 1 June
On March 1, Mocl Co. began construction of a small building. The following expenditures were incurred for construction: March 1 April 1 May 1 June 1 July 1 $330,000 281,000 730,500 1,086,000 384,000 The building was completed and occupied on July 1. To help pay for construction $230,000 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. Part 1 Your answer is correct. Calculate the weighted-average accumulated expenditures. (Do not leave any answer field blank. Enter Ofor amounts.) Weighted-Average Accumulated Expenditure Date Expenditures Capitalization Period March 1 $330,000 4/12 $ 110000 April 1 281,000 3/12 70250 May 1 730,500 2/12 121750 June 1 1,086,000 1/12 90500 July 1 384,000 0 0 392500 Part 2 Calculate avoidable interest. Round answer to 0 decimal places, e.g. 12,515.) Avoidable interest $
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