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Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $4,140,000 on March 1, $2,760,000 on June 1, and $6,900,000 on December 31.Tamarisk Company borrowed $2,300,000 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 10%, 5-year, $4,600,000 note payable and an 11%, 4-year, $8,050,000 note payable. Compute avoidable interest for Tamarisk Company. Use the weighted-average interest rate for interest capitalization purposes. (Round "Weighted-average interest rate" to 4 decimal places, e.g. 2.5125 and final answer to 0 decimal places, e.g. 5,275.)Avoidable Interest $=

User Anishek
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Answer:

Avoidable interest are $569,564.64

The answer and procedures of the exercise are attached in a microsoft excel document.

Step-by-step explanation:

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

User Cameron Lee
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