Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,980,000 on March 1, $1,260,000 on June 1, and $3,087,000 on December 31. Tamarisk Company borrowed $1,172,000 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, $2,045,000 note payable and an 11%, 4-year, $3,472,000 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 O decimal places, e.g. 5,275.) Avoidable interest $ 269582

Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,980,000 on March 1, $1,260,000 on June 1, and $3,087,000 on December 31. Tamarisk Company borrowed $1,172,000 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, $2,045,000 note payable and an 11%, 4-year, $3,472,000 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 O decimal places, e.g. 5,275.) Avoidable interest $ 269582

Name: Please walk me through problem. Tamarisk Company is constructing a bui
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Description: Please walk me through problem. Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditureswere $1,980,000 on March 1, $1,260,000 on June 1, and $3,087,000 on December 31.Tamarisk Compa

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 8RE

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