Novak Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $12,500,000 on January 1, 2020. Novak expected to complete the building by December 31, 2020. Novak has the following debt obligations outstanding during the construction period.

Construction loan-12% interest, payable semiannually, issued December 31, 2019		$5,000,000
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021		3,500,000
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024		2,500,000

(a) Assume that Novak completed the office and warehouse building on December 31, 2020, as planned at a total cost of $13,000,000, and the weighted-average amount of accumulated expenditures was $9,000,000. Compute the avoidable interest on this project.