Tamarisk Company is constructing a building. Construction began on February 1 and was completed on...
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Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,520,000 on March 1, $1,680,000 on June 1, and $4,200,000 on December 31. Tamarisk Company borrowed $1,400,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $2,800,000 note payable and an 11%, 4-year, $4,900,000 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. 0.2152 and final answer to 0 decimal places, e.g. 5,275.)
Avoidable interest
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