Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,016,000 on March 1, $1,236,000 on June 1, and $3,084,900 on December 31. Hanson Company borrowed $1,118,300 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,044,700 note payable and an 10%, 4-year, $3,521,500 note payable. Compute avoidable interest for Hanson Company. Use the weighted-average interest rate for interest capitalization purposes