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Waterway Company is constructing a building. Construction began on February 1 and was completed on December 31 . Expenditures were $2,016,000 on March 1, $1,296,000
Waterway Company is constructing a building. Construction began on February 1 and was completed on December 31 . Expenditures were $2,016,000 on March 1, $1,296,000 on June 1, and $3,052,020 on December 31. Waterway Company borrowed $1,137,000 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 10%,5-year, $2,453,000 note payable and an 11%,4-year, $3,176,000 note payable. Compute avoidable interest for Waterway Company. Use the weighted-average interest rate for interest capitalization purposes. (Round weighted-average interest rate to 4 decimal ploces, eg. 0.2152 and final answer to 0 decimal places, e.g. 5,275.) Avoidable interest
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