empt History Vaughn Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of 4,380,000 on January 1, 2022. Vaughn expected to complete the building by December 31, 2022. Vaughn has the following debt obligations outstanding during the construction period. Construction loan-14% interest, payable semiannually, issued December 31, 2021 Short-term loan-12% Interest, payable monthly, and principal payable at maturity on May 30, 2023 Long-term loan-13% Interest, payable on January 1 of each year Principal payable on January 1, 2026 (a) x Your answer is incorrect Borrowing costs 1,790,000 1,432,000 Assume that Vaughn completed the office and warehouse building on December 31, 2022, as planned at a total cost of 4.654,000. The following expenditures were made during the period forthis project: January 1,6895.000. April 1, 1.295.000 July 1, 1.695,000; and October 1, 560.000. Excess funds from the construction loans were invested during the period and earned 19,800 of investment income. Compute the amount of borrowing costs to be capitalized for this project (Use interest rates rounded to 2 decimal places, eg. 7.58% for computational purposes and round final answers to 0 decimal places, es 5.275) 2121925 895,000 (b) eTextbook and Media * Your answer is incorrect Compute the depreciation expense for the year ended December 31, 2023 Vaughn elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a residual value of 6297,000 (Round answer to decimal places, eg 5,275) Depreciation Expense eTextbook and Media Attempts 3 of 3ed 342556 Attempts: 3 of 3 used