Calculating Avoidable Interest
Weighted average accumulated expenditures are $720,000 on a project for which work steadily progressed during the current year. The following debt was outstanding during the current year.
Construction loan $180,000 at 10%
Note payable $900,000 at 8%
Mortgage payable $270,000 at 12%
Calculate avoidable interest for the purpose of interest capitalization.
Note: Round interest rate percentage used in your calculation to two decimal places (for example, enter 2.05 for 2.04555%).
Avoidable interest $Answer
