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thanks Novak 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
thanks Novak 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. Novak expected to complete the building by Decernber 31, 2020. Novak has the following debt. obligations outstanding during the construction period. (a) Assume that Novak 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 avoldable interest on this project. (Use interest rates rounded to 2 decimal places, es. 7.58% for computational purposes and round final answers to 0 decimal places, es. 5,275. Avoidable interest 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 ploces, eg. 5,275. $ On December 31,2019, Sweet Inc, borrowed $3,540,000 at 13% payable annually to finance the construction of a new building. In 2020 , the company made the following expenditures related to this building: March 1,$424,800; June 1,$708,000; July 1 . $1.770,000; December 1,$1,770,000. The buliding was completed in February 2021. Additional information is provided as follows: (a) Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building. The amount of interest
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