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Please Help me find Avoidable Interest amount. I am not sure where the borrowing amoont is to go by. Coronado inc is a book dlstributor
Please Help me find Avoidable Interest amount. I am not sure where the borrowing amoont is to go by. Coronado inc is a book dlstributor that had been operating in its original facility since 1995 . The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Coronado since 2020. Coronado's original facility became obsolete by early 2025 because of the increased sales volume and the fact that Coronado now carries DVDs in addition to books. On lune 1,2025, Coronado contracted with Black Construction to have a new bullding constructed for $4.960,000 on land owned by Coronado. The payments made by Coronado to Black Construction are shown in the schedule below. Construction was completed and the bulding was ready for occupancy on May 27, 2026. Coronado had no new borrowings directly associated with the new bullding but had the following debt outstanding at May 31, 2026, the end of its fiscal year. 10X. S year note payable of \$2.480000, dated April 1,2022, with interest payable annually on April 1. 129. 10 year bond issue of $3.720,000 sold at par on June 30.2018, with interest payable anrwally on June 30. The new building qualfies for interest capitalization The effect of caplal iang the interest on the new building, compared with the effect of expensing the interest is material. Compute the avoidable interest on Coronado's new building. (Round intermediate percentage calculation to 1 decimal place, eg. 15.6\% and final answer to 0 decimol ploces, eg. 5.125.) Avoidable interest $ eTextbook and Media Attempts: 4 of 15 used (c) The parts of this question must be completed in order. This part will be avalable when you complete the part above
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