NovakFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,000,000 on January 1, 2020. Novak expected to complete the building by December 31, 2020. Novak has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 $1,600,000 1,200,000 800,000 (a) Your Answer Correct Answer Your answer is correct. Assume that Novak completed the office and warehouse building on December 31, 2020, as planned at a total cost of $4,160,000, and the weighted-average amount of accumulated expenditures was $2,880,000. 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.) (b) Avoidable Interest $ 325120 eTextbook and Media Attempts: 1 of 3 used Compute the depreciation expense for the year ended December 31, 2021. 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 $240,000. (Round answer to 0 decimal places, e.g. 5,275.) Depreciation Expense $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer