IvanhoeFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $12,000,000 on January 1, 2020. Ivanhoe expected to complete the building by December 31, 2020. Ivanhoe has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $4,800,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 3,600,000 Long-term loan-11% Interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,400,000 (a) X Your answer is incorrect. Assume that Ivanhoe completed the office and warehouse building on December 31, 2020, as planned at a total cost of $12,480,000, and the weighted-average amount of accumulated expenditures was $8,640,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.3. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.) Avoidable Interest $ 40.512.000