Ivanhoe Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,944,000on March 1, $1,224,000on June 1, and $3,032,200on December 31.

Ivanhoe Company borrowed $1,016,400on March 1 on a5-year,13% note to help finance construction of the building. In addition, the company had outstanding all year a9%,5-year, $2,206,100note payable and an10%,4-year, $3,702,000note payable. Compute avoidable interest for Ivanhoe Company. Use the weighted-average interest rate for interest capitalization purposes