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Metlock Company is constructing a building. Construction began on February 1 and was completed ...

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Accounting

Metlock Company is constructing a building. Construction began on February 1 and was completed
on December 31. Expenditures were $1,908,000 on March 1,$1,308,000 on June 1, and
$3,011,000 on December 31.
Metlock Company borrowed $1,016,000 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,
$2,195,000 note payable and an 11%,4-year, $3,605,000 note payable. Compute avoidable
interest for Metlock 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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