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Use the infomation below for questions 1 to 11 Arlington Company is constructing a building in 2015. Construction began on January 1 completed on December
Use the infomation below for questions 1 to 11 Arlington Company is constructing a building in 2015. Construction began on January 1 completed on December 31. Ex and was penditures were $4,800,000 on March 1, S3,960,000 on June 1, and $6,000,000 on December 31. Arlington Company borrowed $2,400,000 on January 1 on a 5- year, 12% note to help finance construction of the building. outstanding all year a l note payable. In addition, the company had 1. What is the actual (total) interests? a. 1,470,000 b. 480,000 c. 990,000 d. 1,758,000 2. What is the amount of specific borrowing? a. 4,8000,000 b. 13,800,000 c. 2,400,000 d. None of the above 3. What is the interest for the specific borrowing? a. 1,758,000 b.480,000 c. 990,000 d. 288,000 4. What are the weighted-average accumulated expenditures? a. $8,760,000 b. $6,310,000 c. $14,760,000 d. $7,380,000 5. When calculating avoidable interests, which step below is included? compare specific borrowing with weighted average accurmulated expenditure b. compare actual interest with weighted average accumulated expenditure c. compare actual interest with total materials purchased d. none of the above
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