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VaughnFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $8,500,000 on January 1, 2020.

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VaughnFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $8,500,000 on January 1, 2020. Vaughn expected to complete the building by December 31, 2020. Vaughn has the following debt obligations outstanding during the construction period. $3,400,000 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 2,550,000 Long-term loan-11% interest payable on January 1 of each year. Principal payable on January 1, 2024 1.700.000 Avoidable Interest $ 690880 e Textbook and Media (b) Compute the depreciation expense for the year ended December 31, 2021. Vaughn 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 $510,000. (Round answer too decimal places, eg. 5,275) Depreciation Expense $ VaughnFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $8,500,000 on January 1, 2020. Vaughn expected to complete the building by December 31, 2020. Vaughn has the following debt obligations outstanding during the construction period. $3,400,000 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 2,550,000 Long-term loan-11% interest payable on January 1 of each year. Principal payable on January 1, 2024 1.700.000 Avoidable Interest $ 690880 e Textbook and Media (b) Compute the depreciation expense for the year ended December 31, 2021. Vaughn 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 $510,000. (Round answer too decimal places, eg. 5,275) Depreciation Expense $

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