MetlockCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,980,000on March 1, $1,320,000on June 1, and $3,300,000on December 31.

MetlockCompany borrowed $1,100,000on March 1 on a5-year,10% note to help finance construction of the building. In addition, the company had outstanding all year a12%,5-year, $2,200,000note payable and an11%,4-year, $3,850,000note payable. Compute avoidable interest forMetlockCompany. Use the weighted-average interest rate for interest capitalization purposes