Problem 10-07 (Part Level Submission) Sage Inc. is a book distributor that had been operating in its original facility since 1990. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Sage since 2015. Sage' original facility became obsolete by early 2020 because of the increased sales volume and the fact that Sage new carries CDs in addition to books On June 1, 2020, Sage contracted with Black Construction to have a new building constructed for $5,120,000 on land owned by Sage. The payments made by Sage to Black Construction are shown in the schedule below Date July 30, 2020 January 30, 2021 May 30, 2021 Total payments Amount $1,152,000 1,920,000 2,048,000 $5,120,000 Construction was completed and the building was ready for occupancy on May 27, 2021. Sage had no new borrowings directly associated with the new building but had the following debt outstanding at May 31, 2021, the end of its fiscal year. 10%, 5-year note payable of $2,560,000, dated April 1, 2017, with interest payable annually on April 1. 12%, 10-year band issue of 53,840,000 sold at par on June 30, 2013, with interest payable annually on June 30. The new building qualifies for interest capitalization. The effect of capitaluring the interest on the new building, compared with the effect of expensing the interest, is material Your answer is correct. Compute the weighted average accumulated expenditures on Sage's new building during the capitation period Weighted Average Accumulated Expenditures 1600000 Click if you would like to show Work for this question: Open Show Work (b) x Your answer is incorrect. Try again Compute the avoidable interest on Sage's new building (Round intermediate percenta mal place, e.g. 15.6% and final answer to decimal places, e.g. 5 Avoidable Interest Click if you would like to show Work for this questioni Open Show Work LINK TO TEXT Attempts: 3 of 10 used SAVE FOR LATER SUBMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above