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please calculate the borrowing costs and explain in details. Swifty Furniture...

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Accounting

please calculate the borrowing costs and explain in details.
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Swifty Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $12,500,000 on January 1, 2020. Swifty expected to complete the building by December 31, 2020. Swifty has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $5,000,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 3,500,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,500,000 (a) Your answer is incorrect. Assume that Swifty completed the office and warehouse building on December 31, 2020, as planned at a total cost of $13,000,000, and the weighted-average amount of accumulated expenditures was $9,000,000. Compute the avoidable interest on this project. (Use interest rates rounded to 4 decimal places, e.g. 7.5825% for computational purposes and round final answers to decimal places, eg, 5,275.) Avoidable Interest $

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