Carla Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,024,000 on January 1, 2017. Carla expected to complete the building by December 31, 2017. Carla has the following debt obligations outstanding during the construction period.

Construction loan-12% interest, payable semiannually, issued December 31, 2016		$1,990,600
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018		1,603,500
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2021		990,300

Assume that Carla completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,167,700, and the weighted-average amount of accumulated expenditures was $3,777,200. Avoidable interest is $424,321.08

Compute the depreciation expense for the year ended December 31, 2018. Carla 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 $302,800.