Reference no: EM13764994
Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,824,000 on March 1, $1,212,000 on June 1, and $3,057,100 on December 31.
Hanson Company borrowed $1,198,100 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,141,300 note payable and an 10%, 4-year, $3,759,300 note payable. Compute the weighted-average interest rate used for interest capitalization purposes.
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Weighted-average interest rate used interest capitalization
: Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,824,000 on March 1, $1,212,000 on June 1, and $3,057,100 on December 31.
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