Current Attempt in Progress Sage Hill Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.2 million on March 1, $0.9 million on June 1, and $4 million on December 31. Sage Hill Company borrowed $1.2 million on March 1 on a five-year, 13% note to help finance the building construction. In addition, the company had outstanding all year a $3- million, five-year, 15% note payable and a $3.7-million, four-year, 16% note payable. (a1) Calculate the company's avoidable borrowing costs assuming Sage Hill follows IFRS. (Do not round intermediate calculations. Round capitalization rate to 2 decimal places, e.g. 52.75% and final answer to O decimal places, e.g. 5,275.) Avoidable borrowing costs $
Current Attempt in Progress Sage Hill Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.2 million on March 1, $0.9 million on June 1, and $4 million on December 31. Sage Hill Company borrowed $1.2 million on March 1 on a five-year, 13% note to help finance the building construction. In addition, the company had outstanding all year a $3- million, five-year, 15% note payable and a $3.7-million, four-year, 16% note payable. (a1) Calculate the company's avoidable borrowing costs assuming Sage Hill follows IFRS. (Do not round intermediate calculations. Round capitalization rate to 2 decimal places, e.g. 52.75% and final answer to O decimal places, e.g. 5,275.) Avoidable borrowing costs $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Sage Hill Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures
were $1.2 million on March 1, $0.9 million on June 1, and $4 million on December 31. Sage Hill Company borrowed $1.2 million on
March 1 on a five-year, 13% note to help finance the building construction. In addition, the company had outstanding all year a $3-
million, five-year, 15% note payable and a $3.7-million, four-year, 16% note payable.
(a1) Calculate the company's avoidable borrowing costs assuming Sage Hill follows IFRS. (Do not round intermediate calculations. Round
capitalization rate to 2 decimal places, e.g. 52.75% and final answer to O decimal places, e.g. 5,275.)
Avoidable borrowing costs $
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