In 2017, Barden Building Company constructed a specialized equipment at a total cost of $14,700,000 (excluding capitalized interest). It took the entire year of 2017 to construct the asset. The weighted average accumulated expenditures qualifying for capitalization of interest during 2017 were $9,800,000. The company had the following debt outstanding at December 31, 2017: 1. 10%, 5-year note to finance construction of specialized equipment, $6,300,000 Dated. January 1, 2017, with interest payable annually on January 1 (Construction specific loan) 2. 12%, ten-year bonds issued at par on December 31, 2011, with interest 7,000,000 payable annually on December 31 3. 9%, 3-year note payable, dated January 1, 2016, with interest payable 3,500,000 annually on January 1 Compute the amounts of each of the following (show your calculations). Avoidable interest. Total interest to be capitalized during 2017. If the equipment has a useful life of 15 years with $250,000 residual value, calculate the amount of annual depreciation on a straight-line basis. After 6 years of its use, in the 7th year, the company made a major overhaul of the equipment by incurring $1,300,000, which extends the useful life by another 8 years beyond its original useful life with zero residual value. Calculate annual depreciation on the machine from the 7th year onward assuming that the company charges full year depreciation in the year of addition.