Capitalization of Interest and Depreciation During 2017, Mercator Company Company borrowed $67,000 from a local bank for the construction of a new corporate office building. Mercator used an additional $120,000 cash for the construction. Based on average accumulated expenditures, the amount of interest capitalized during 2017 was $8,000. Construction was completed, and the building was occupied on January 1, 2018. Required: 1. Determine the acquisition cost of the new building. 2. The building has an estimated useful life of 20 years and a $5,000 salvage value. Assuming that Mercator uses the straight-line basis to depreciate its operating assets, determine the amount of depreciation expense for 2017 and 2018. If necessary, round any depreciation calculations to the nearest dollar. If an amount is zero, enter "0". Year 2017 Straight-Line Depreciation 2018