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Pearl Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $9,000,000 on January 1,

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Pearl Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $9,000,000 on January 1, 2020. Pearl expected to complete the building by December 31, 2020. Pearl 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 2 $3,600,000 ,520,000 1,800,000 Assume that Pearl completed the office and warehouse building on December 31, 2020, as planned at a total cost of $9,360,000, and the weighted average amount of accumulated expenditures was $6,480,000. 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 $ LINK TO TEXT Compute the depreciation expense for the year ended December 31, 2021. Pearl 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 $540,000. (Round answer to o decimal places, e.g. 5,275.) Depreciation Expenses

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