On July 1, 2022, Bashful Co. contracts with Doc Co. to build Bashfuls new factory. Doc began work immediately on the factory and continued working until the projects completion on December 31, 2023. Bashfuls payments to Doc for the construction are presented below. Payment Date Payment Amount October 1, 2022 $6,000,000 January 1, 2023 $4,000,000 March 1, 2023 $3,000,000 July 1, 2023 $2,000,000 October 1, 2023 $3,000,000

On January 1, 2023, Bashful borrowed $10,000,000 to help fund the factory construction costs. This debt incurs interest at 10% annually. Bashful paid this borrowing in full on June 30, 2023. Bashful has no other debt outstanding. Assuming that Bashful is a calendar-year company that capitalizes interest when appropriate, compute the following amounts for 2023: Factory account at year-end ______________________ Avoidable Interest ______________________ Actual Interest during Capitalization Period ______________________ Actual Interest during Fiscal Year ______________________ Interest Expense ______________________