On January 1, 2017 Mercy Co. began construction of a small building. The following expenditures were incurred for construction:

January 1 $200,000

March 1 300,000

April 1 250,000

May 1 720,000

June 1 1,080,000

July 1 400,000

The building was completed and occupied on Dec. 31, 2017.

To help pay for construction $1,500,000 was borrowed on Jan. 1 on a 12%, five-year note payable.

The only other debt outstanding during the year was a $3,000,000, 10% note issued two years ago.

Calculate avoidable interest.