Swifty Corporation is constructing a building. Construction began on January 1 and was completed on December 31.
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Question:
Swifty Corporation is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6360000 on March 1, $5310000 on June 1, and $8450000 on December 31. Swifty Corporation borrowed $3160000 on January 1 on a 5-year, 11% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 3-year, $6410000 note payable and an 10%, 4-year, $12450000 note payable. What is the avoidable interest for Swifty Corporation?
a. $353005
b. $1116455
c. $853543
d. $347600
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