116k views
0 votes
Sheridan Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6390000 on March 1, $5350000 on June 1, and $8650000 on December 31. Sheridan Company borrowed $3160000 on January 1 on a 5-year, 14% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 3-year, $6380000 note payable and an 13%, 4-year, $12450000 note payable. What is the weighted-average interest rate used for interest capitalization purposes

User Nakashu
by
5.7k points

1 Answer

2 votes

Answer:

$1,511,642.50

Step-by-step explanation:

Kindly check attached picture for detailed explanation

Sheridan Company is constructing a building. Construction began on January 1 and was-example-1
User LTEHUB
by
5.3k points