Question text

Company began construction of a machine on 1/1/2021. Company borrowed $700,000 at 10% on 1/1/2021 for this project. The project was under construction during the entire calendar year. Expenditures were made on the project during the year:

Expenditure	|| Date
100,000	1/1/2021
300,000	3/1/2021
600,000	7/1/2021
400,000	10/1/2021

Company also had $1,000,000 outstanding at 12% during the entire year.

Required:

Calculate Avoidable and Actual Interest. Show work to receive credit.