On March 1,Orono Co

question 68

Essay

On March 1,Orono Co.began construction of a small building.The following expenditures were incurred for construction:
The building was completed and occupied on July 1.To help pay for construction $50,000 was borrowed on March 1 on a 12%,three-year note payable.The only other debt outstanding during the year was a $500,000,10% note issued two years ago.
Required:
(a)Calculate the weighted-average accumulated expenditures.
(b)Calculate avoidable interest.

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Definitions:

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