Capitalization of interest:

During 2014, Barden Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2014 were $8,400,000. The company had the following debt outstanding at December 31, 2014:

1.	10%, 5-year note to finance construction of various assets,
	dated January 1, 2014, with interest payable annually on January 1	$5,400,000
2.	12%, ten-year bonds issued at par on December 31, 2008, with interest
	payable annually on December 31	6,000,000
3.	9%, 3-year note payable, dated January 1, 2013, with interest payable
	annually on January 1	3,000,000

Instructions

Compute the amounts of each of the following (show computations).

1.	Avoidable interest.
2.	Total interest to be capitalized during 2014.