Question

Monty Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,064,000 on March 1, $1,212,000 on June 1, and $3,017,300 on December 31. Monty Company borrowed $1,158,300 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, $2,118,200 note payable and an 11%, 4-year, $3,544,100 note payable. Compute avoidable interest for Monty Company. Use the weighted-average interest rate for interest capitalization purposes. (Round percentages to 2 decimal places, e.g. 2.51% and final answer to 0 decimal places, e.g. 5,275.)

Calculate Avoidable interest:

Answer 1

monty company is constnuctine a building began on Feb d and complejed on pe0.a EXPendhuaes Σ 20164000 S12 12000 3013 300 march 1 Dec 31 rompany bosowed archie) 5 year → t2% no te 11 58300- utstanding-all year? 10%nokヲSyear-) F21. I 8 200 つcompute avoidable intere st rasing uDe ighted avenge) ExPlanaHone fli Toral NOTE payable 1158 300 t S 21,18200ts 3s4410O 16320600 12% nok 2]ll 2011, note- . E--1153300/16820600, 16.98%. s2IA 8 200 l s 68 20600 31,06% あ3544100 l s 6820600 51 . 96:1

2.0316 + 3-106 t 5, 귀56 10-3592一久ー110,961/ dapitatisea antsest 186 792 1 2 ne- $ 12 12 000 x 10,86% 白une- Dec- month) 3 pec 3ast day of Yea so mO capitai2atio $ 263532