Glasspar Boat Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,450,000 on January 1, 2017. Glasspar expected to complete the building by December 31, 2017. Glasspar had the following debt obligations outstanding during the construction period: Construction loan: 14.5% interest, payable semiannually, issued December 31, 2016 $1,200,000 Short-term loan: 12% interest, payable monthly, and principal payable at maturity on May 30, 2019 800,000 Long-term loan: 10% interest, payable on January 1 of each year. Principal payable on January 1, 2021 600,000 Required: (a) Assume that Glasspar completed the office and warehouse building on December 31, 2017, as planned, at a total cost of $3,750,000 and the weighted average of accumulated expenditures was $1,990,000. Compute the avoidable interest on this project. (Round interest rates to two decimal places.) (b) Compute the depreciation expense for the year ended December 31, 2018. Glasspar elected to depreciate the building on a straight-line basis and determined that it has a useful life of 30 years and a salvage value of $200,000