A company is constructing equipment that qualifies for interest capitalization. The company spends $30,000 on January 1, $40,000 on May 31, and $60,000 on December 31. The company has a $35,000, 12% construction-specific bonds payable outstanding throughout the year. If the company has a 9.7% weighted- average interest rate for its other generic debt, what is the amount of avoidable interest for the year ending December 31? (Ch10) $6,302 $4,200 $5,173 $5,978