During 2017, Barden Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2017 were $9,800,000. The company had the following debt outstanding at December 31, 2017:

1. 10%, 5-year note to finance construction of various assets,

dated January 1, 2017, with interest payable annually on January 1 $6,300,000

2. . 12%, ten-year bonds issued at par on December 31, 2011, with interest

payable annually on December 31: $7,000,000

3. 9%, 3-year note payable, dated January 1, 2016, with interest payable

annually on January 1: $3,500,000

Instructions

1. Compute the amount of Avoidable interest.

Avoidable Interest

Weighted average accumulated expenditure	Interest rate	Avoidable Interest
$6,300,000 (specific borrowing)	10%	$630,000
$3,500,000 (general borrowing)	11%	$385,000
$9,800,000		$1,015,000

Weighted average interest rate computation

	Principle	Interest
9% 3- year note	$3,500,000	$315,000
12% ten-year bonds	$7,000,000	$840,000
Total	$10,500,000	$1,155,000

Total interest/Total principal

$1,155,000/$10,500,000 = 11%

I am not sure if the above answer is correct. Please provide any explanation or corrections.