intermediate accounting)

Randy started to construct a new building in January 1, 2020 and the it was fully completed on December 31, 2020. During this period the company has paid for contractors following payment $ Payment in Date of Payment 250,000 January 1, 2020 250,000 March 1, 2020 400,000 August 1, 2020 600,000 October 1, 2020 500,000 December 31, 2020 The debt balances in 2020 shows following Special Debt for construction has been signed on January 1, 2020 at interest rate of 12% by $500,000 General Debt (N/P $300,000 10%-10 years dated on January 1, 2018) General Debt (N/P $200,000 7.5%-5 years dated on January 1, 2019) Required: Compute Avoidable Interest Cost