On 1/1/2021, Binche Co. began construction of a specialized piece of production equipment. 

The company paid $80,000 on the first day of construction and $110,000 on 4/30/2021, 12/31/2021, and 5/1/2022. 

A final payment of $80,000 was made on 8/31/2022, when the PPE was finished and ready for use. 

To help finance the project, Binche Co. took out a $340,000, 13%, construction loan on 1/1/2021. 

They also have $3,100,000 of 11% bonds payable outstanding. 

What was Binche Co.'s avoidable interest in 2021? 

Answer rating: 100% (QA)

To calculate the avoidable interest we need to determine the amount of interest that could have been ... View the full answer