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Pharoah Company is constructing a building. Construction began on February 1 and was completed on...

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Accounting

Pharoah Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,812,000 on March 1, $1,212,000 on June 1, and $3,014,300 on December 31. Pharoah Company borrowed $1,070,800 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $2,030,800 note payable and an 11%, 4-year, $3,170,100 note payable. Compute avoidable interest for Pharoah Company. Use the weighted-average interest rate for interest capitalization purposes. (Round percentages to 2 decimal places, e.g. 2.51% and final answer to 0 decimal places, e.g. 5,275.)

What is the Avoidable interest?

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