Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,980,000 on March 1, $1,260,000 on June 1, and $3,087,000 on December 31. Tamarisk Company borrowed $1,172,000 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, $2,045,000 note payable and an 11%, 4-year, $3,472,000 note payable. Compute avoidable interest for Tamarisk 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 $ 269582
Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,980,000 on March 1, $1,260,000 on June 1, and $3,087,000 on December 31. Tamarisk Company borrowed $1,172,000 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, $2,045,000 note payable and an 11%, 4-year, $3,472,000 note payable. Compute avoidable interest for Tamarisk 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 $ 269582
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures
were $1,980,000 on March 1, $1,260,000 on June 1, and $3,087,000 on December 31.
Tamarisk Company borrowed $1,172,000 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, $2,045,000 note payable and an 11%, 4-year, $3,472,000 note payable. Compute
avoidable interest for Tamarisk 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
269582](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b4716a4-a38f-4ced-a01b-7b5515818a14%2Fca790586-0339-4355-8337-4c6cd6fd0797%2Fg0e1pvj_processed.png&w=3840&q=75)
Transcribed Image Text:Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures
were $1,980,000 on March 1, $1,260,000 on June 1, and $3,087,000 on December 31.
Tamarisk Company borrowed $1,172,000 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, $2,045,000 note payable and an 11%, 4-year, $3,472,000 note payable. Compute
avoidable interest for Tamarisk 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
269582
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