Marigold Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,440,000 on March 1, $960,000 on June 1, and $2,400,000 on December 31. Marigold Company borrowed $800,000 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, $1,600,000 note payable and an 11%, 4-year, $2,800,000 note payable. Compute avoidable interest for Marigold Company. Use the weighted-average interest rate for interest capitalization purposes.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.