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During 2025, Maria Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2025 were $8,347,000. The company had the following debt outstanding at December 31, 2025:

10%, 5-year note to finance construction of various assets, dated January 1, 2025, with interest payable annually on January 1

$5.388.000

12%, ten-year bonds issued at par on December 31, 2016, with interest payable annually on December 31

5.811.000

3.

9%, 3-year note payable, dated January 1, 2025, with interest payable annually on January 1

2,905,500

Compute the amounts of each of the following.

1. Avoidable interest
2. Total interest to be capitalized during 2025

During 2025. Maria Building Company constructed various assets at a total cost of $12,600,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2025 were $8,347,000. The company had the following debt outstanding at December 31, 2025: 1. 10%,5-year note to finance construction of various assets, dated January 1,2025 , with interest payable annually on January 1 $5,388,000 2. 12%, ten-year bonds issued at par on December 31,2016 , with interest payable annually on December 31 5,811,000 3. 9%,3-year note payable, dated January 1,2025 , with interest payable annually on January 1 2,905,500 Compute the amounts of each of the following 1. Avoidable interest

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