Flint Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,035,800 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-12% interest, payable semiannually, issued December 31, 2016 $1,991,900

Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 1,607,900

Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2021 1,004,700

A. Assume that Flint completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,186,100, and the weighted-average amount of accumulated expenditures was $3,832,900. 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 $301,600