On Dec 31, 2020 Laf borrowed $3,000,000 at 12% payable annually to finance construction of a new building. In 2021 the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; Dec 1, $1,500,000. The building was completed on April 30, 2022 Other debt outstanding 10 year, $4,000,000, 13% bond, December 31, 2014, interest payable annually 6 year, 10%, $1,600,000 note dated December 31,2018, interest payable March 1, 2021 an additional expenditure was made towards construction of $150,000 Interest revenue earned in 2021 $49,000 What is the weighted average interest rate of debt other than the specific borrowing loan? (Round of interest rate to nearest whole number, so if you calculated .1412 you would write 14) The firm does not need to use the WAIR rate in calculating capitalized interest in order for it to exist
2. On Dec 31, 2020 Laf borrowed $3,000,000 at 12% payable annually to finance construction of a new building. In 2021 the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; Dec 1, $1,500,000. The building was completed on April 30, 2022
Other debt outstanding
10 year, $4,000,000, 13% bond, December 31, 2014, interest payable annually
6 year, 10%, $1,600,000 note dated December 31,2018, interest payable
March 1, 2021 an additional expenditure was made towards construction of $150,000
Interest revenue earned in 2021 $49,000
What is the weighted average interest rate of debt other than the specific borrowing loan? (Round of interest rate to nearest whole number, so if you calculated .1412 you would write 14) The firm does not need to use the WAIR rate in calculating capitalized interest in order for it to exist
Thank you
Brenda
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