Exercise 10-07 (Part Level Submission) Ivanhoe Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,500,000 on January 1, 2020. Ivanhoe expected to complete the building by December 31, 2020. Ivanhoe has the following debt obligations outstanding during the construction period.

Exercise 10-07 (Part Level Submission) Ivanhoe Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,500,000 on January 1, 2020. Ivanhoe expected to complete the building by December 31, 2020. Ivanhoe has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 $1,800,000 1,260,000 900,000 (a) Assume that Ivanhoe completed the office and warehouse building on December 31, 2020, as planned at a total cost of $4,680,000, and the weighted average amount of accumulated expenditures was $3,240,000. Compute the avoidable interest on this project. (Use interest rates rounded to 4 decimal places, e.g. 7.5825% for computational purposes and round final answers to I decimal places, e.g. 5,275.) Avoidable Interest Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 5 used