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What is the avoidable interest for ABC Company

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Reference no: EM132973933

Problem - ABC Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $7,360,000 on March 1, $6,072,000 on June 1, and $9,200,000 on December 31. ABC Company borrowed $3,680,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6,400,000 note payable and an 11%, 4-year, $12,000,000 note payable. What is the avoidable interest for ABC Company?

Reference no: EM132973933

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