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Hanson Company Assignment | Assignment Help Services

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September 13th, 2019

Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,728,000 on March 1, $1,212,000 on June 1, and $3,010,000 on December 31.Hanson Company borrowed $1,094,000 on March 1 on a 5-year, 12% note to help finance construction of the building.

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In addition, the company had outstanding all year a 10%, 5-year, $2,586,000 note payable and an 11%, 4-year, $3,380,000 note payable. Compute the weighted-average interest rate used for interest capitalization purposes. (Round answer to 2 decimal places, e.g. 2.25.)%

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