2. Y Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2004. Harrisburg expected to complete the building by December 31, 2004. Harrisburg has the following debt obligations outstanding during the construction period. Construction loan12% interest, payable semiannually, issued December 31, $2,000,000 2003 Short-term loan-10% interest, payable monthly, and principal payable at 1,400,000 maturity on May 30, 2005 Long-term loan-11% interest, payable on January 1 of each year. Principal 1,000,000 payable on January 1, 2008 Required: (a) Assume that Harrisburg completed the office and warehouse building on December 31, 2004, as planned at a total cost of $5,200,000, and the weighted average of accumulated expenditures was $3,600,000. Compute the avoidable interest on this project. (b) Compute the depreciation expense for the year ended December 31, 2005. 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 $300,000