Junco, a calendar year corporation, began construction of a new building in January. Junco borrowed $2,000,000 at 10% to help pay for the construction of the building. You also know the following:

Actual expenditures $2,300,000

Weighted average accumulated expenditures $1,200,000

Actual interest expense incurred $ 200,000

Interest revenue $ 40,000

Concerning capitalization of interest, what is the amount of avoidable interest?

		80,000
		120,000
		160,000
		230,000