quisition and Disposition of Property, Plant, and Equipment Instructions Prepare the entry that should have been made at the dat E10.7 (LO 2) (Capitalization of Interest) Harrisburg of a combination office and warehouse building for its own use at an estimates January 1, 2020. Harrisburg expected to complete the building by Decem arrisburg expected to complete the building by December 31, 2020. Harrisburg nasce following debt obligations outstanding during the construction period. anization of Interest) Harrisburg Furniture Company started construction 8 for its own use at an estimated cost of $5,000,00 ron oides 01 Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable $2,000,000 at maturity on May 30, 2021 For 1,400,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,000,000 Instructions (Carry all computations to two decimal places.) a. Assume that Harrisburg completed the office and warehouse building on December 31, 2020, as planned at a total cost of $5,200,000, and the weighted-average amount of accumulated expendi- tures was $3,600,000. Compute the avoidable interest on this project. b. Compute the depreciation expense for the year ended December 31, 2021. Harrisburg 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 $300,000. Tulud 2000 m