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In: Accounting
Skysong Company is constructing a building. Construction began on February 1 and was completed on December...
Skysong Company is constructing a building. Construction began
on February 1 and was completed on December 31. Expenditures were
$3,240,000 on March 1, $2,160,000 on June 1, and $5,400,000 on
December 31.
Skysong Company borrowed $1,800,000 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, $3,600,000 note
payable and an 11%, 4-year, $6,300,000 note payable. Compute
avoidable interest for Skysong Company. Use the weighted-average
interest rate for interest capitalization purposes.
svoidable intrest?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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