Exercise 10-7 Pearl Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,040,900 on January 1, 2017. Pearl expected to complete the building by December 31, 2017. Pearl 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 $2,017,900 1,586,200 995,900 x Your answer is incorrect. Try again. Assume that Pearl completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,197,700, and the weighted average amount of accumulated expenditures was $3,781,600. 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 o decimal places, e.g. 5,275.) Avoidable Interest 510317 LINK TO TEXT x Your answer is incorrect. Try again. Compute the depreciation expense for the year ended December 31, 2018. Pearl 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 $298,200. (Round answer to o decimal places, e.g. 5,275.) Depreciation Expense