Pronghorn Furniture Company started construction of a combination office and

warehouse building for its own use at an estimated cost of $4,972,800 on January 1, 2017. Pronghorn expected to complete the building by December 31, 2017. Pronghorn has the following debt obligations outstanding during the construction period.

Construction loan-10% interest, payable semiannually, issued December 31, 2016$2,019,500

Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 20181,605,600

Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 20211,001,000

Assume that Pronghorn completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,192,000, and the weighted-average amount of accumulated expenditures was $3,827,600. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)

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