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Construction began on jan 1 and completed dec 31.
expenditures were
feb 1, $420,000
may 1 $325,000 and
dec 31 $700,000.
Monty borrowed $190,000 on jan 1 on a 4 yr 10% note to help finance construction. in addition the co. had outstanding all yr an 8%, 3 yr $900000 note payable and a 12% 3yr $700000 note payable. what are the weighted avg accumulated expenditures? the weighted avg interest rate used for interedt capitalization purposes? avoidable interest? actual interest?what amount of interest should be charged to expense?
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