Sunland Company is constructing a building, C were $1.944,000 on March 1. $1.224,000 on

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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x Your answer is incorrect.
Sunland Company is constructing a building Construction began on February 1 and was completed on December 31. Expenditures
were $1.944,000 on March 1. $1,224,000 on June 1, and $3,032,000 on December 31,
Sunland Company borrowed $1,016,000 on March 1 ona 5-year, 12% note to help finance construction of the building in addition, the
company had outstanding all year a 9%, 5-year, $2.206.000 note payable and an 10%, 4 year. $3,702,000 note payable Compute
avoidable interest for Sunland 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 O decimal places, eg. 5,275)
Avoidable interest
179830.40
Transcribed Image Text:x Your answer is incorrect. Sunland Company is constructing a building Construction began on February 1 and was completed on December 31. Expenditures were $1.944,000 on March 1. $1,224,000 on June 1, and $3,032,000 on December 31, Sunland Company borrowed $1,016,000 on March 1 ona 5-year, 12% note to help finance construction of the building in addition, the company had outstanding all year a 9%, 5-year, $2.206.000 note payable and an 10%, 4 year. $3,702,000 note payable Compute avoidable interest for Sunland 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 O decimal places, eg. 5,275) Avoidable interest 179830.40
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