A Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,016,700 on January 1, 2014. The company expected to complete the building by December 31, 2014. The company has the following debt obligations outstanding during the construction period.

Construction loan12% interest, payable semiannually, issued December 31, 2013		$2,014,900
Short-term loan10% interest, payable monthly, and principal payable at maturity on May 30, 2015		1,623,000
Long-term loan11% interest, payable on January 1 of each year; principal payable on January 1, 2018		1,012,300

Part A: Assume that the company completed the office and warehouse building on December 31, 2014, as planned at a total cost of $5,215,900, and the weighted average amount of accumulated expenditures was $3,812,400. Compute the avoidable interest on this project.

Part B: Compute the depreciation expense for the year ended December 31, 2015. The company 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 $316,400.