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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,

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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 office and warehouse building on December 31, 2025, as planned, at a total cost of $14,040,000, and the weighted-average amount of accumulated expenditures was $9,720,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, eg. 7.58\% for computotional purposes and round final answers to O decimal ploces, es. 5,275] Avoidable interest 5 line basis and detirmined that the asset has a tseful ife of 30 vears and a sakage vitlue of 5810.000 . Reund anine ta 0 deching plecer, es. 5,275 ) Depreciation expense

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