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$2,000,000 sa.cee s00 Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated f cost of
$2,000,000 sa.cee s00 Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated f cost of $5,000,000 on January 1, 2017. Harrisburg expected to complete the building by December 31, 2017. Harrisburg has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2016 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2021 $2,000,000 1,400,000 1,000,000 Assume that Harrisburg completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,200,000, and the weighted-average amount of accumulated expenditures was $3,600,000. Compute the avoidable interest on this project. (use interest to 0 decimal places e.g. 5,275.) rates rounded to 2 decimal places, e g 7.58% for computational purposes and round final answers Avoidable Interest s Compute the depreciation expense for the year ended December 31, 2018. Harrisburg elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $300,000. (Round answer to o decimal places, e.g. 5,275.) Depreciation Expense s
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