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Vaughn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,968,000 on March 1. $1,248,000 on
Vaughn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,968,000 on March 1. $1,248,000 on June 1, and $3,046,000 on December 31 . Vaughn Company borrowed $1,086,000 on March 1 on a 5 -year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%,5-year, $2,448,000 note payable and an 10%,4-year, $3,546,000 note payable. Compute avoidable interest for Vaughn Company. Use the weighted-average interest rate for interest capitalization purposes. (Round weighted. overage interest rate to 4 decimal places, es. 0.2152 and finol answer to 0 decimal places, es. 5,275.) Avoidable interest
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