Question: Sheffield Corp. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6430000 on March 1, $5250000

Sheffield Corp. is constructing a building. Construction began on January 1 and

Sheffield Corp. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6430000 on March 1, $5250000 on June 1, and $8950000 on December 31. Sheffield Corp. borrowed $3200000 on January 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 8%, 3-year, $6410000 note payable and an 9%, 4-year, $12850000 note payable. What is the weighted-average interest rate used for interest capitalization purposes? 8.87% 8.52% 8.67% 9.00%

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