NovakFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $6,500,000 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 $ 2,600,000 Short-term loan- 10% interest, payable monthly, and principal payable at maturity on May 30, 2021 1,950,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,300,000 (a) Your answer is correct. Assume that Novak completed the office and warehouse building on December 31, 2020, as planned at a total cost of $ 6,760,000, and the weighted average amount of accumulated expenditures was $4,680,000. 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 0 decimal places, e.g. 5,275.) Avoidable Interest $ 528,320 (b) 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 $ 390,000. (Round answer to O decimal places, e.g. 5,275.) Depreciation Expense $ ta e Textbook and Media