Question: Brief Exercise 10-04 Stellar Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,980,000 on March

Brief Exercise 10-04

Stellar Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,980,000 on March 1, $1,320,000 on June 1, and $3,300,000 on December 31. Stellar Company borrowed $1,100,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,200,000 note payable and an 11%, 4-year, $3,850,000 note payable. Compute avoidable interest for Stellar Company. Use the weighted-average interest rate for interest capitalization purposes. (Round "Weighted-average interest rate" to 4 decimal places, e.g. 2.5125 and final answer to 0 decimal places, e.g. 5,275.)

Avoidable interest

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