$1.**$Construction Loan$**-$ A financial obligation incurred by Bisan Systems Co$.$ amounting to $$650,000$ with an annual interest rate of $12\%,$ specifically procured for the purpose of financing the construction of a building, initiated on March $1,2020,$ and extinguished on December $31,2020\mathrm{.}2.**$Avoidable Interest$**-$ The portion of interest cost during the period that could have been avoided if expenditures for the asset had not been made, calculated based on the weighted average accumulated expenditures and applicable interest rates$\mathrm{.}3.**$Weighted Average Accumulated Expenditures$**-$ A calculation method used to determine the average amount of money spent over a period, weighted by the time period each expenditure was outstanding, which is crucial in the computation of avoidable interest$\mathrm{.}4.**$Specific Construction Debt$**-$ Debt that is directly attributable to the financing of a specific asset under construction, in this context, the $$650,000$ loan secured by Bisan Systems Co$.$ for the construction of a building$\mathrm{.}5.**$Outstanding Debt$**-$ Financial obligations that Bisan Systems Co$.$ has not yet repaid as of December $31,2020,$ including the construction loan, a $2-$year loan of $$100,000$ at $10\%,$ a $3-$year loan of $$500,000$ at $8\%,$ and $$2,000,000$ issued in $5-$year bonds at $12\%\mathrm{.}6.**$Interest Rate$**-$ The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender, exemplified by the rates applied to the construction loan $(12\%),$ the $2-$year loan $(10\%),$ the $3-$year loan $(8\%),$ and the $5-$year bonds $(12\%)\mathrm{.}7.**$Capitalized Interest$**-$ Interest that is added to the cost of a constructed asset, rather than being immediately expensed, thereby increasing the asset's book value on the balance sheet$\mathrm{.}8.**$Bonds Issued$**-$ A financial instrument representing Bisan Systems Co$.\text{'}$s indebtedness to the holders, amounting to $$2,000,000$ at an interest rate of $12\%$ over a $5-$year term, initiated on September $1,2020\mathrm{.}9.**$Loan Repayment$**-$ The act of paying back the borrowed funds to the lender, which in this scenario includes the repayment of the $$650,000$ construction loan on December $31,2020\mathrm{.}10.**$Interest Cost$**-$ The total amount of interest that accumulates on borrowed funds over the life of the loan, which in the context of this text, includes interest on the construction loan, the $2-$year loan, the $3-$year loan, and the $5-$year bonds$\mathrm{.}11.**$Expenditures$**-$ The outflows of cash or other valuable assets that Bisan Systems Co$.$ incurs related to the construction of the building, totaling $$1,800,000$ for the construction contract and $$200,000$ for the land cost$\mathrm{.}12.**$Land Cost$**-$ The price paid by Bisan Systems Co$.$ for acquiring the land on which the building is constructed, amounting to $$200,000$ and included in the first payment to the construction company$\mathrm{.}13.**$Construction Contract$**-$ A legal agreement between Bisan Systems Co$.$ and Nabali