Swifty Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,824,000 on March 1, $1,224,000 on June 1, and $3,015,000 on December 31. Swifty Company borrowed $1,052,000 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, $2.132.000 note payable and an 11%, 4-year. $3,215,000 note payable. Compute avoidable interest for Swifty 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 O decimal places, e.g. 5,275.) Avoidable interest
Swifty Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,824,000 on March 1, $1,224,000 on June 1, and $3,015,000 on December 31. Swifty Company borrowed $1,052,000 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, $2.132.000 note payable and an 11%, 4-year. $3,215,000 note payable. Compute avoidable interest for Swifty 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 O decimal places, e.g. 5,275.) Avoidable interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Swifty Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
$1,824,000 on March 1, $1,224,000 on June 1, and $3,015,000 on December 31.
Swifty Company borrowed $1,052,000 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, $2.132.000 note payable and an 11%, 4-year, $3,215,000 note payable. Compute
avoidable interest for Swifty 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 O decimal places, e.g. 5,275.)
Avoidable interest $
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