ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 192

31) Arlington Company is constructing a building. Construction
began on January 1 and was completed on December 31.
Expenditures were $4,800,000 on March 1, $3,960,000 on June 1, and
$6,000,000 on December 31. Arlington Company borrowed
$2,400,000 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, $4,800,000 note payable and an 11%, 4-year,
$9,000,000 note payable.

What is the weighted-average interest rate used for interest
capitalization purposes?

32) Arlington Company is constructing a building. Construction
began on January 1 and was completed on December 31.
Expenditures were $4,800,000 on March 1, $3,960,000 on June 1, and
$6,000,000 on December 31. Arlington Company borrowed
$2,400,000 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, $4,800,000 note payable and an 11%, 4-year,
$9,000,000 note payable.