Monty Furniture started construction of a combination office and warehouse building for its own use...
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Monty Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of E4,320,000 on January 1, 2022. Monty expected to complete the building by December 31,2022 . Monty has the following debt obligations outstanding during the construction period. Construction loan- 12% interest, payable semiannually, issued December 31,2021 Short-term loan- 10% interest, payable monthly, and principal payable at maturity on May 30,2023 C1,760,000 Long-term loan-11\% interest, payable on January 1 of each year. Principal payable on January 1,2026 1,408,000 Compute the depreciation expense for the year ended December 31, 2023. Monty elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a residual value of 288,000. (Round answer to 0 decimal places, es. 5,275.) Depreciation Expense
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