Exercise 10-7 Sheridan Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,950,000 on January 1, 2017. Sheridan expected to complete the building by December 31, 2017. Sheridan has the following debt obligations outstanding during the construction period Construction loan-10% interest, payable semiannually, issued December 31, 2016 Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2018 Long-term loan-9% interest, payable on January 1 of each year, principal payable on January 1, 2021 $1,989,400 1,591,100 993,800 Your answer is correct. Assume that Sheridan completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,211,800, and the weighted-average amount of accumulated expenditures was $3,768,500. 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, eg. S 275) Avoidable Interest SHOW SOLUTION LINK TO TEXT 1 Your answer is incorrect. Try again. compute the depreciation expense for the year ended December 31, 2018. Sheridan 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 299,800. (Round answer to O decimal places, e.g. 5,275) Depreciation Expense 163733