Business, 20.11.2019 20:31 antisnitch1
Oriole furniture company started construction of a combination office and warehouse building for its own use at an estimated cost of $9,500,000 on january 1, 2020. oriole expected to complete the building by december 31, 2020. oriole has the following debt obligations outstanding during the construction period. construction loan-12% interest, payable semiannually, issued december 31, 2019 $3,800,000 short-term loan-10% interest, payable monthly, and principal payable at maturity on may 30, 2021 2,660,000 long-term loan-11% interest, payable on january 1 of each year. principal payable on january 1, 2024 1,900,000 assume that oriole completed the office and warehouse building on december 31, 2020, as planned at a total cost of $9,880,000, and the weighted-average amount of accumulated expenditures was $6,840,000. compute the avoidable interest on this project. (u
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