What is the amount of avoidable interest

Assignment Help Accounting Basics

Reference no: EM131975381

Problem

During self-construction of a building by Samuelson Company incurred $586,806 weighted average accumulated expenditure. The company borrowed $281,717 @ 8 percent for the construction of the building and had other debt of 1) $850,783 bond payable @ 7 percent 2) $62,385 note payable @ 8 percent. What is the amount of avoidable interest?

Reference no: EM131975381

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