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Blue Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $13,500,000 on January 1,2025.

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Blue Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $13,500,000 on January 1,2025. Blue expected to complete the building by December 31,2025, Blue has the following debt obligations outstanding during the construction period. (a) Assume that Blue completed the olfice and warehouse building on December 31, 2025, as planned, at a totalcost of $14,040,000, and the weighted-average amount of accumulated expenditures was $9,720,000. Compute the avoidable interest on this project. (Use interet rates rounded to 2 decinal places eg. 7.58% for computational purposes and round finol onawers to 0 decimal ploces, es. 5.275) Compute the depreciation expense for the year ended December 31.2026. Blue elected to depreciate the buliding on astraightline basis and determined that the asset has a useful life of 30 years and a salvage value of 5810.000 . (Round answer to 0 decimal. ploces, es. 5.275.) Depreciation expense

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