I. Interest Capitalization On January 1, 2022, Jeffers Company purchased land for an office site by paying $800,00 cash. Jeffers began construction on the office building on January 1, 2022. The building was completed on December 31, 2022. The following expenditures were incurred for construction: To help pay for construction, $3,000,000 was borrowed on January 1, 2022, on a 9%,5-year note payable. In addition to the construction note, the following were outstanding for all of 2022 : $4,000,000,12%,6-year note payable $5,000,0006% 10-year bonds payable Instructions: Determine the (1) avoidable interest, (2) actual interest, and (3) interest to be capitalized