Waterway Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,016,000 on March 1. $1.296,000 on June 1, and $3,052,090 on December 31. Waterway Company borrowed $1,137,000 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, $2,453,000 note payable and an 11%, 4-year, $3,176,000 note payable. Compute avoidable interest for Waterway 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.) Avoidable interest 11.36

Waterway Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,016,000 on March 1. $1.296,000 on June 1, and $3,052,090 on December 31. Waterway Company borrowed $1,137,000 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, $2,453,000 note payable and an 11%, 4-year, $3,176,000 note payable. Compute avoidable interest for Waterway 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.) Avoidable interest 11.36

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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