Exercise 10-7 Swifty Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,981,900 onJanuary 1, 2017. Swifty expected to complete the building by December 31, 2017. Swifty 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 $2,000,100 1,595,800 1,002,900 Assume that Swifty completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,251,100, and the weighted-average amount of accumulated expenditures was $3 799,100 Compute the avoidable nterest 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, eq. S,275.) Avoidable Interest Compute the depreciation expense for the year ended December 31, 2018. Swifty 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 $297,300. (Round answer to o decimal places, e.g.5,275) Depreciation Expense Question Attempts: 0 of 7 used t o 2000-2018 by John Wlay & Sn, Ino. or nelatod companiea. All righta recarved