Question: BuffaloCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $4,680,000on March 1, $3,120,000on June 1, and

BuffaloCompany is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $4,680,000on March 1, $3,120,000on June 1, and $7,800,000on December 31.

BuffaloCompany borrowed $2,600,000on March 1 on a5-year,10% note to help finance construction of the building. In addition, the company had outstanding all year a12%,5-year, $5,200,000note payable and an11%,4-year, $9,100,000note payable. Compute avoidable interest forBuffaloCompany. Use the weighted-average interest rate for interest capitalization purposes.(Round "Weighted-average interest rate" to 4 decimal places, e.g. 0.2152 and final answer to 0 decimal places, e.g. 5,275.)

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