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-average interest rate to 4 decimal places, e.g. 0.2152 and final answer to O decimal places, e.g. 5,275.) Avoidable interest $

Metlock Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck are described below. 1. Truck \#1 has a list price of $31,350 and is acquired for a cash payment of $29,051. 2. Truck #2 has a list price of $33,440 and is acquired for a down payment of $4,180 cash and a zero-interest-bearing note with a face amount of $29,260. The note is due April 1, 2026 . Metlock would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has a borrowing rate of 8%. 3. Truck \#3 has a list price of $33,440. It is acquired in exchange for a computer system that Metlock carries in inventory. The computer system cost $25,080 and is normally sold by Metlock for $31,768. Metlock uses a perpetual inventory system. 4. Truck \#4 has a list price of $14,460. It is acquired in exchange for 1,030 shares of common stock in Metlock Corporation. The stock has a par value per share of $10 and a market price of $13 per share