ANSWERS TO QUESTIONS

Weighted-Average Interest Avoidable Accumulated Expenditures Rate Interest $180,000 X 12% = $21,600 Note to instructor: If the interest is allocated between the building and the machinery, $15,120 ($21,600 X 105/150) would be allocated to the building and $6,480 ($21,600 X 45/150) would be allocated to the machinery. ................
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