Marin Company is constructing a building. Construction began on
February 1 and was completed on December 31. Expenditures were
$2,052,000 on March 1, $1,200,000 on June 1, and $3,007,200 on
December 31.
Marin Company borrowed $1,042,720 on March 1 on a 5-year, 13% note
to help finance construction of the building. In addition, the
company had outstanding all year a 9%, 5-year, $2,039,800 note
payable and an 10%, 4-year, $3,462,500 note payable. Compute the
weighted-average interest rate used for interest capitalization
purposes. (Round answer to 2 decimal places, e.g.
7.58%.)
Weighted-average interest rate |
Weighted Average Interest rate | = | 9.63% | |||
Workings: | |||||
Weighted Average rate of all debt:- | |||||
$ 20,39,800 | X | 9% | = | $ 1,83,582 | |
$ 34,62,500 | X | 10% | = | $ 3,46,250 | |
$ 55,02,300 | $ 5,29,832 | ||||
Weighted Average rate of all debt = | 9.63% | ||||
($529832 / $5502300) |
Marin Company is constructing a building. Construction began on February 1 and was completed on December...
Marin Company is constructing a building Construction began on February 1 and was completed on December 31 Expenditures were $1,860,000 on March 1. $1.260,000 on June 1, and $3,016,770 on December 31 Marin Company borrowed $1.198,000 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 9%.5-year. $2,088.000 note payable and an 10%, 4-year. $3,308,700 note payable Compute the weighted average interest rate used for interest...
Bridgeport Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,052,000 on March 1, $1,200,000 on June 1, and $3,007,200 on December 31. Bridgeport Company borrowed $1,042,720 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,039,800 note payable and an 10%, 4-year, $3,462,500 note payable. Compute the weighted-average interest rate used for interest...
Sheffield Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,872,000 on March 1, $1,272,000 on June 1, and $3,056,400 on December 31. Sheffield Company borrowed $1,174,000 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,151,700 note payable and an 11%, 4-year, $3,326,100 note payable. Compute the weighted-average interest rate used for interest...
Vaughn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,004,000 on March 1, $1,284,000 on June 1, and $3,024,560 on December 31. Vaughn Company borrowed $1,101,510 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, $2,417,700 note payable and an 11%, 4-year, $3,702,800 note payable. Compute the weighted-average interest rate used for interest...
Pearl Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,028,000 on March 1, $1,308,000 on June 1, and $3,091,450 on December 31. Pearl Company borrowed $1,082,890 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,243,100 note payable and an 11%, 4-year, $3,364,500 note payable. Compute the weighted average interest rate used for...
Culver Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,860,000 on March 1, $1,260,000 on June 1, and $3,016,770 on December 31. Culver Company borrowed $1,198,000 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 9%, 5-year, $2,088,000 note payable and an 10%, 4-year, $3,308,700 note payable. Compute the weighted-average interest rate used for interest...
Oriole Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,884,000 on March 1, $1,284,000 on June 1, and $3,049,820 on December 31. Oriole Company borrowed $1,038,290 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,241,900 note payable and an 11%, 4-year, $3,500,300 note payable. Compute the weighted-average interest rate used for interest...
Wildhorse Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,824,000 on March 1, $1,224,000 on June 1, and $3,030,540 on December 31. Wildhorse Company borrowed $1,082,950 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 9%, 5-year, $2,046,800 note payable and an 10%, 4-year, $3,555,500 note payable. Compute the weighted-average interest rate used for interest...
Stellar Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,260,000 on March 1, $840,000 on June 1, and $2,100,000 on December 31. Stellar Company borrowed $700,000 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 8%, 5-year, $1,400,000 note payable and an 11%, 4-year, $2,450,000 note payable. Compute avoidable interest for Stellar Company. Use the...
Nash 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. Nash 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 Nash Company. Use the...