Novak Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $15,000,000 on January 1, 2025. Novak expected to complete the building by December 31, 2025. Novak has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2024 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2026 Long-term loan-11% interest, payable on January 1 of each year; principal payable on January 1, 2029 $6,000,000 4,500,000 3,000,000 Your answer is correct. Assume that Novak completed the office and warehouse building on December 31, 2025, as planned, at a total cost of $15,600,000, and the weighted-average amount of accumulated expenditures was $10,800,000. 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 $ 1,219,200 (b) Compute the depreciation expense for the year ended December 31, 2026. Novak 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 $900,000. (Round answer to 0 decimal places, eg. 5,275.) Depreciation expense eTextbook and Media $