EDUC 3510U Lecture : Lecture 5
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Dessin Company is constructing a building. Construction began on January 1, 2012 and was completed on December 31, 2012. Expenditures were
March 1, 2012 | $750,000 |
June 1, 2012 | 200,000 |
September 31, 2012 | 350,000 |
October 1, 2012 | 100,000 |
December 31, 2012 | 250,000 |
Company borrowed $1,300,000 on January 1 on a 7-year, 11% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 4-year, $2,800,000 note payable and an 10%, 4-year, $3,400,000 note payable.
What are the weighted-average accumulated expenditures?
What is the weighted-average interest rate used for interest capitalization purposes?
What is the avoidable interest for the company?
What is the actual int bzscerest for the company?
Show your computations!