Exercise 10-07 (Part Level Submission) Novak Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $15,000,000 on January 1, 2020. Novak expected to complete the building by December 31, 2020. Novak 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 $6,000,000 4,200,000 3,000,000 (a) x Your answer is incorrect. Try again. Assume that Novak completed the office and warehouse building on December 31, 2020, as planned at a total cost of $15,600,000, and the weighted average amount of accumulated expenditures was $10,800,000. 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 o decimal places, e.g. 5,275.) Avoidable Interest 1220160 Click if you would like to Show Work for this question: Open Show Work