Brief Exercise 10-4

Bramble Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,088,000 on March 1, $1,236,000 on June 1, and $3,075,700 on December 31. Bramble Company borrowed $1,054,700 on March 1 on a 5-year, 13% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,216,900 note payable and an 10%, 4-year, $3,161,900 note payable. Compute avoidable interest for Bramble Company. Use the weighted-average interest rate for interest capitalization purposes. (Round percentages to 2 decimal places, e.g. 2.51% and final answer to 0 decimal places, e.g. 5,275.)

Avoidable interest is?