Firm X decided to construct a new building for their corporate headquarters. The company made three separate $1,000,000 expenditures related to the construction. The first was expenditure was made on 1/1/1, the second on 7/1/1, and the third on 10/1/1. To help finance the construction, Firm X took out a 5-year, 12% loan for $1,200,000. Assume the weighted-average interest rate on all the firms other debt is 10%. Firm X incurred $250,000 of interest costs on all its debt during Year 1. Calculate Firm Xs avoidable interest for Year 1 assuming that the building was completed and occupied on 10/31/Yr1. Record the appropriate journal entries related to the firms interest in that year.