Calculating Avoidable Interest Weighted average accumulated expenditures are $720,000 on a project for which work steadily progressed
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Calculating Avoidable Interest
Weighted average accumulated expenditures are $720,000 on a project for which work steadily progressed during the current year. The following debt was outstanding during the current year.
Construction loan | $180,000 at 10% | |
Note payable | $900,000 at 8% | |
Mortgage payable | $270,000 at 12% |
Calculate avoidable interest for the purpose of interest capitalization.
Note: Round interest rate percentage used in your calculation to two decimal places (for example, enter 2.05 for 2.04555%).
Avoidable interest $Answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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