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On January 1, Year 1, Paul Tire Service, Inc. signed a contract to have a new service center built for $900,000. On the same day, Paul borrowed $400,000 to finance the construction. This is an annual loan at a stated rate of 10%.
Other Debt existing on the books as of January 1, Year 1:
Expenditures made on the project during Year 1 were as follows: 1/1 $600,00010/1 $200,000 $800,000
Problem 1: What is the WAAE?
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