Riverbed Company is constructing a building. Construction began on February 1 and was completed on December...

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Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $4,140,000 on March 1, $2,760,000 on June 1, and $6,900,000 on December 31. Riverbed Company borrowed $2,300,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $4,600,000 note payable and an 11%, 4-year, $8,050,000 note payable. Compute avoidable interest for Riverbed 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 0 decimal places, e.g. 5,275.) Avoidable interest $ Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $4,140,000 on March 1, $2,760,000 on June 1, and $6,900,000 on December 31. Riverbed Company borrowed $2,300,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $4,600,000 note payable and an 11%, 4-year, $8,050,000 note payable. Compute avoidable interest for Riverbed 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 0 decimal places, e.g. 5,275.) Avoidable interest $

Answer rating: 100% (QA)

Answer Expenditure Time period Weighted average Expenditure March 1 4140000 1012 3450000 ... View the full answer