Harmon Company is constructing a building. Construction began on February 1 and was completed on...
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Harmon Company is constructing a building. Construction began on February 1 and was completed on December 31 of the same year. Expenditures were $1,800,000 on March 1, $1,200,000 on June 1, and $3,000,000 on October 31, Harmon Company borrowed $1,000,000 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, $2,000,000 note payable and an l 1%, 4-year $3,500,000 note payable. (I know, I used lots of zeroes) purposes Compute the weighted-average interest rate used for interest capitalization purposes. (round your percentage to 2 places). 2. 3. Compute avoidable interest for Harmon Company
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