Kingbird Company is constructing a building. Construction began on February 1 and was completed on...
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Kingbird Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.4 million on March 1, $1.1 million on June 1, and $4 million on December 31. Kingbird Company borrowed $1.2 million on March 1 on a five-year, 13% note to help finance the building construction. In addition, the company had outstanding all year a $2-million, five-year, 13% note payable and a $3.4-million, four-year, 16% note payable. Calculate the companys avoidable borrowing costs assuming Kingbird Company follows IFRS.
Avoidable Borrowing Costs
$
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