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Sarasota Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4.953.300 on January 1, 2017. Sarasota expected to complete the building by December 31, 2017 Sarasota has the following debt obligations outstanding during the construction period. Construction loan-12% interest. payable semiannually, issued December 31, 2016 Short-term loan-10% interest payable monthly, and principal payable at maturity on May 20,2018 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2021 $2,015,500 1,609,200 990,400 {a) Your answer is correct. Assume that Sarasota completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,173,700, and the weighted average amount of accumulated expenditures was $3,830.200. Compute the avoidable interest on this project. (Use interest nded to 2 decimal places eg. 7585 for ational purposes and round final answers to decimal places, eg 5.275) Avoidable Interest $ 430236 e Textbook and Media Attempts: 1 of 3 used (b) Compute the depreciation expense for the year ended December 31, 2018. Sarasota 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 $297.500. (Round answer to O decimal places,.. 5.275.) Depreciation Expense $

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