Teal Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $ 4, 994, 000 on January 1 , 2017 . Teal expected to complete the building by December 31 , 2017 . Teal has the following debt obligations outstanding during the construction period . Construction loan - 10% interest , payable semiannually , issued December 31 , 2016 $2, 008, 400 Short-term loan- 8% interest , payable monthly , and principal payable at maturity on May 30 , 2018 1 , 595 , 400 Long-term loan - 9% interest , payable on January 1 of each year . Principal payable on January 1 , 2021 1 , 009 , 600 Assume that Teal completed the office and warehouse building on December 31 , 2017 , as planned at a total cost of $5, 248, 300 , and the weighted - average amount of accumulated expenditures was $3, 803, 000 . Compute the avoidable interest on this project