On January $1,2012,$ Harrison's, Inc., borrowed $$90,000$ at $12\%$ payable annually to finance the construction of a new

building. The building was completed December $31,2012.$ In $2012,$ the company made the following expenditures related to

this building: March $1,$$$360,000$; June $1,$$$600,000$; July $1,$$$1,500,000$; December $1,$$$1,200,000$; December $31,$$$300,000.$

Additional information is provided as follows:

Other debt outstanding:

$10-$year, $11\%$ bond.

$.$$$4,000,000$

$6-$year, $10\%$ note

$$1,600,000$

The March $1,2012$ expenditure includes land cost of $$150,000$

Research and development expenses in $2012$ were........ $$70,000$ Question $4$

Using the same information from the questions above:

What is the avoidable interest?

Integer, decimal, or E notation allowed

Answer rating: 100% (QA)

Solution To find the avoidable interest we need to calculate the interest expense on the loan and th... View the full answer