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xyz Company started construction on a building at the beginning of the current year and completed the construction at year-end. The entity had only two interest notes outstanding during the year both of these notes were outstanding for 12 months of the year.
The following information is available:
Average accumulated expenditures 2,500,000
Ending balance in construction in progress before capitalization of interest 3,600,000
6% note incurred specifically for the project 1,500,000
9% long term note 5,000,000
Question 1: What is the cost of the Building?
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