outstanding debt issuances during the entire year of construction:

$6,000,000 face value, 8% interest.

$8,000,000 face value, 9% interest.

None of the borrowings were specified for the construction of the qualified fixed asset. Average expenditures for the year were $1,000,000. What interest rate should Sun use to calculate capitalized interest on the construction?

a. 8.00%

b. 8.50%

c. 8.57%

d. 9.00%

The correct asnwer is C- I think I can figure out how to get to C..but can someone tell me where I can find the rule regarding to this in becker or other sourse? I don't recall I have even came aross of this type of question in the past...thanks