Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,019,700 on January 1, 2014. Harrisburg expected to complete the building by December 31, 2014. Harrisburg has the following debt obligations outstanding during the construction period.

Construction loan11% interest, payable semiannually, issued December 31, 2013		$2,015,000
Short-term loan9% interest, payable monthly, and principal payable at maturity on May 30, 2015		1,629,200
Long-term loan10% interest, payable on January 1 of each year; principal payable on January 1, 2018 a) Assume that Harrisburg completed the office and warehouse building on December 31, 2014, as planned at a total cost of $5,210,600, and the weighted average amount of accumulated expenditures was $3,810,100. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.) b) Compute the depreciation expense for the year ended December 31, 2015. Harrisburg 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 $315,100. (Round answer to 0 decimal places, e.g. 5,275.)		1,016,100