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(Solved) : Monty Company Constructing Building Construction Began February 1 Completed December 31 Ex Q34209781

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Answer to Monty Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditure…

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Monty Company is constructing a building. Construction began onFebruary 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 onDecember 31. Monty Company borrowed $1,158,300 on March 1 on a5-year, 12% note to help finance construction of the building. Inaddition, the company had outstanding all year a 10%, 5-year,$2,118,200 note payable and an 11%, 4-year, $3,544,100 notepayable. Compute avoidable interest for Monty Company. Use theweighted-average interest rate for interest capitalizationpurposes. (Round percentages to 2 decimal places, e.g. 2.51% andfinal answer to 0 decimal places, e.g. 5,275.)

Calculate Avoidable interest: