- During 2020 Box Building Company Constructed Various Assets At A Total Cost Of 10 400 000 The Weighted Average Accumu 1 (74.51 KiB) Viewed 14 times
During 2020, Box Building
Company constructed various assets at a total cost of £10,400,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were £6,000,000. The
company had the following debt outstanding at December 31, 2020: 10%, 5-year note to finance construction of various assets, dated January 1, 2020, with interest payable annually on January 1 11%, ten-year bonds issued at par on December 31, 2013, with interest payable annually on December 31 8%, 3-year note payable, dated January 1, 2018, with interest payable annually on January 1 Instructions: Compute the Avoidable interest. Calculation of Avoidable interest. Weighted Average Accumulated Expenditures Applicable Interest Rate(%) Total Avoidable interest Avoidable interest £3,000,000 4,000,000 2,000,000