Flint Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,035,100 on January 1, 2017. Flint expected to complete the building by December 31, 2017. Flint has the following debt obligations outstanding during the construction period.

- Construction Loan, 10% interest, payable semiannually, issued December 31, 2016: 2,016,600

-Short Term Loan, 8% interest, payable monthly, principal payable at maturity May 30, 2018: 1,589,000

-Long Term Loan, 9% interest, payable on January 1 of each year. Principle payable on Jan 1, 2012: 997,900

a) Assume that Flint completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,203,700, and the weighted-average amount of accumulated expenditures was $3,826,900. Compute the avoidable interest on this project.

b) Compute the depreciation expense for the year ended December 31, 2018. Flint 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 $302,400.