Kingbird Industries Inc. started construction of a manufacturing facility for its own use at an estimated cost of $12,000,000 on January 1, 2017. Kingbird expected to complete the building by December 31, 2017. Kingbirds debt, all of which was outstanding during the construction period, was as follows.

		Construction loan11% interest, payable semiannually, issued December 31, 2016; $6,000,000
		Long-term loan #1 10% interest, payable on January 1 of each year. Principal payable on January 1, 2019; $1,800,000
		Long-term loan #212% interest, payable on December 31 of each year. Principal payable on December 31, 2025; $4,200,000

(a)

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Assume that Kingbird completed the facility on December 31, 2017, at a total cost of $12,360,000, and the weighted-average amount of accumulated expenditures was $8,160,000. Compute the avoidable interest on this project.