Use the Following Information to Answer Questions

question 1

Multiple Choice

Use the following information to answer questions
Arlington Company is constructing a building.Construction began on January 1 and was completed on December 31.Expenditures were $2,400,000 on March 1, $1,980,000 on June 1, and $3,000,000 on December 31.Arlington Company borrowed $1,200,000 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, $2,400,000 note payable and an 11%, 4-year, $4,500,000 note payable.
-What is the avoidable interest for Arlington Company?

• A)$144,000
• B)$463,808
• C)$164,281
• D)$352,208

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Definitions:

Wakefulness

The state of being awake and aware of one's environment, contrasting with sleep or unconsciousness.

Sleep Apnea

A sleep disorder characterized by repeated interruptions of breathing during sleep.

Nasal Passages

The channels through which air passes from the nostrils to the nasopharynx, playing a key role in respiration and filtering of airborne particles.

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.