Question - Sheridan Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6540000 on March 1, $5280000 on June 1, and $8650000 on December 31. Sheridan Company borrowed $3170000on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6430000 note payable and an 11%, 4-year, $11950000 note payable.
What is the avoidable interest for Sheridan Company?