Question: Please help me solve the problem so I can have a better understanding Question #1 Silverline Freight Company started construction of a combination ofce and
Please help me solve the problem so I can have a better understanding

Question #1 Silverline Freight Company started construction of a combination ofce and warehouse building for its own use at an estimated cost of $3,540,000 on January 1, 2017. Silverline expected to complete the building by December 31, 2017. Silverline had the following debt obligations outstanding during the construction period: Construction loan: 6.00% interest, payable monthly, issued January 1, 2017 in the amount of $1,800,000 Short-term loan: 7% interest, payable monthly; principal payable at maturity on May 30, 2019 in the amount of $600,000 Longterm loan: 5.5% interest, payable on January 1 of each year; principal payable on January 1, 2021 in the amount of $800 000 Reguired (a) Assume that Silverline completed the ofce and warehouse building on December 31, 2017 for a total cost of $3,820,000, and the weighted average of accumulated expenditures was $2,190,000. Compute the avoidable interest on this project. (Round interest rates to tw_o decimal places.) Round your nal calculation to the nearest whole dollar. (b) Compute the depreciation expense for the year ended December 31, 2018. Silverline elected to depreciate the building on a straightline basis and estimates that it has a useful life of 30 yea rs with $100,000 salvage value. Round your nal calculation to the nearest whole dollar
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