Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
On March 1, Tony Co. began construction of a small building. The following expenditures were incurred for construction:
On March 1, Tony Co. began construction of a small building. The following expenditures were incurred for construction:
March 1$96,000
April 1$82,000
May 1$170,000
June 1$300,000
July 1$90,000
The building was completed and occupied on July 1.
To help pay for construction, $80,000 was borrowed on March 1 on a 14%, three-year note payable. The only other debt outstanding during the year was a $550,000, 12% note issued two years ago.
Calculate the avoidable interest.
