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Business, 25.09.2019 04:00 clairajogriggsk

Arlington company is constructing a building. construction began on january 1 and was completed on december 31. expenditures were $4,800,000 on march 1, $3,960,000 on june 1, and $6,000,000 on december 31. arlington company borrowed $2,400,000 on january 1 on a 5-year, 12% note to finance construction of the building. in addition, the company had outstanding all year a 10%, 3-year, $4,800,000 note payable and an 11%, 4-year, $9,000,000 note payable. what is the weighted-average interest rate used for interest capitalization purposes? a. 11% b. 10.85% c. 10.5% d. 10.65%what is the avoidable interest for arlington company? a. $288,000 b. $927,615 c. $328,562 d. $704,415what is the actual interest for arlington company? a. $1,758,000 b. $1,782,000 c. $1,470,000 d. $704,415what amount of interest should be charged to expense? a. $765,584 b. $1,470,000 c. $1,053,585 d. $830,384

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