Exercise 10-07 Monty Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $12,000,000 on January 1, 2020. Monty expected to complete the building by December 31, 2020. Monty has the following debt obligations outstanding during the construction period. Construction loan-10% interest, payable semiannually, issued December 31, 2019 Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2024 $4,800,000 3,360,000 2,400,000 Assume that Monty completed the office and warehouse building on December 31, 2020, as planned at a total cost of $12,480,000, and the weighted average amount of accumulated expenditures was $8,640,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to O decimal places, e.g. 5,275.) Avoidable Interest LINK TO TEXT Compute the depreciation expense for the year ended December 31, 2021. Monty 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 $720,000. (Round answer to O decimal places, e.g. 5,275.) Depreciation Expenses