Novak Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,088,000 on March 1.$1,236,000 on June 1, and $3,076,000 on December 31. Novak Company borrowed $1,055,000 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. $2,217,000 note payable and an 10%, 4-year, $3,162,000 note payable. Compute avoidable interest for Novak 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 0 decimal places, e.g. 5,275.) Avoidable interest $

Novak Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,088,000 on March 1.$1,236,000 on June 1, and $3,076,000 on December 31. Novak Company borrowed $1,055,000 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. $2,217,000 note payable and an 10%, 4-year, $3,162,000 note payable. Compute avoidable interest for Novak 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 0 decimal places, e.g. 5,275.) Avoidable interest $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Attempt in Progress Crane Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,800,000 on March 1, $1,200,000 on June 1, and $3,026,000 on December 31. Crane Company borrowed $1.159,000 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, $2,017,000 note payable and an 10 %, 4-year, $3,600,000 note payable. Compute avoidable interest for Crane Company. Use the weighted-average interest rate for interest capitalization purposes. (Round weighted- average interest rate to 4 decimal places, eg. 0.2152 and final answer to 0 decimal places, e.g. 5,275.) I Avoidable interest $ eTextbook and Media Save for Later Assistance Used Attempts: 0 of 3 used Submit Answer
please give me answer
Ajay
Subject: accounting
Vala
Vikram
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