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What amount of interest should be charged

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What amount of interest should be charged Use the following information to answer questions 1 – 5. Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $2,400,000 on March 1, $1,980,000 on June 1, and $3,000,000 on December 31. Arlington Company borrowed $1,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $2,400,000 note payable and an 11%, 4-year, $4,500,000 note payable. 1. What are the weighted-average accumulated expenditures? a. $4,380,000 b. $3,155,000 c. $7,380,000 d. $3,690,000 2. What is the weighted-average interest rate used for interest capitalization purposes? a. 11% b. 10.85% c. 10.5% d. 10.65% 3. What is the avoidable interest for Arlington Company? a. $144,000 b. $463,808 c. $164,281 d. $352,208 4. What is the actual interest for Arlington Company? a. $879,000 b. $891,000 c. $735,000 d. $352,208 5. What amount of interest should be charged to expense? a. $382,792 b. $735,000 c. $526,792 d. $415,192 Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

What amount of interest should be charged

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