please explain aswell.

On January 1, 2017, Northsmith Co. began construction of a building to be used as its office headquarters. The building is expected to be completed on December 31, 2017. Expenditures on this project during 2017 were as follows: March 1 2017 480,000 2017 270,000 October 31 2017 153,000 June 1* On Jan. 1, 2017, the company obtained a $550,000 specific construction loan with an 7% interest rate. The loan was outstanding during the entire construction period. The company's other interest-bearing debts included two long-term notes of $400,000 and $700,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during the entire construction period. Instruction: (a) Determine the amount of interest capitalized for 2017. Please show your work (i.e. WA accumulated expenditure, actual interest, WA interest rate and avoidable interest) to support your final answer. Please round the WA interest rate to four decimal places when necessary. Answer: The amount of interest capitalized for 2017 is (b) Regardless your answer in (a), determine the amount of avoidable interest for 2017 assuming that the WA accumulated expenditure is $480,000 (other things being equal). Answer: The amount of avoidable interest for 2017 is