HeadlandCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $3,600,000on March 1, $2,400,000on June 1, and $6,000,000on December 31.

HeadlandCompany borrowed $2,000,000on March 1 on a5-year,12% note to help finance construction of the building. In addition, the company had outstanding all year a8%,5-year, $4,000,000note payable and an11%,4-year, $7,000,000note payable. Compute avoidable interest forHeadlandCompany. Use the weighted-average interest rate for interest capitalization purposes.(Round percentages to 4 decimal places, e.g. 2.5125% and final answer to 0 decimal places, e.g. 5,275.)

Find Avoidable Interest: