Assume that Harrisburg completed the office and warehouse building on December 3

Question

Assume that Harrisburg completed the office and warehouse building on December 31, 2014, as planned at a total cost of $5,215,000, and the weighted average amount of accumulated expenditures was $3,814,000. Compute the avoidable interest on this project.

Avoidable Interest $ ?

Compute the depreciation expense for the year ended December 31, 2015. Harrisburg 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 $300,400.

Depreciation Expense $ ?

Please add answer with explanation!

Construction loan-11% interest, payable semiannually, issued December 31, 2013 Short-term loan-9% interest, payable monthly, and principal payable at maturity on May 30, 2015 Long-term loan-10% interest, payable on January 1 of each year; principal payable on January 1, 2018 $2,011,200 1,620,000 1,029,800 year principal payable on 3

Explanation / Answer

Assume that Harrisburg completed the office and warehouse building on December 3

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