Exercise 10-7 Nash Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,049,200 on January 1, 2017. Nash expected to complete the building by December 31, 2017. Nash has the following debt obligations outstanding during the construction period Construction loan-12% interest, payable semiannually, issued December 31, 2016 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2021 $1,986,000 1,612,700 1,005,400 Assume that Nash completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,240,800, and the weighted-average amount of accumulated expenditures was $3,806,600. 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 0 decimal places, e.g. 5,275.) Avoidable Interest s LINK TO TEXT Compute the depreciation expense for the year ended December 31, 2018. Nash 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 $301,600. (Round answer to O decimal places, e.g. 5,275.) Depreciation Expenses