Larkspur Company is constructing a building. Construction began on February 1 and was completed on...
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Larkspur Company is constructing a building. Construction began on February 1 and was completed on Decernber 31 . Expenditures were $3,960,000 on March 1, $2,640,000 on June 1 , and $6,600,000 on December 31 . Larkspur Company borrowed $2,200,000 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, $4,400,000 note payable and an 11%,4 year, $7,700,000 note payable Compute avoidable interest for Larlspur Company. Use the weighted-average interest nate for interest capitalization purposes (Round "Weightedaverage interest rate to 4 decimal places, eg 0.2152 and final answer to 0 decimai places, es 5.275.) Avoidableinterest
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