In 2017, Barden Building Company constructed a specialized equipment at a total cost of $14,700,000 (excluding capitalized interest). It took the entire year of 2017 to construct the asset. The weighted average accumulated expenditures qualifying for capitalization of interest during 2017 were $9,800,000. The company had the following debt outstanding at December 31, 2017:

1. 10%, 5-year note to finance construction of specialized equipment,				$6,300,000
Dated. January 1, 2017, with interest payable annually on January 1
(Construction specific loan)
2. 12%, ten-year bonds issued at par on December 31, 2011, with interest				7,000,000
payable annually on December 31
3. 9%, 3-year note payable, dated January 1, 2016, with interest payable				3,500,000
annually on January 1

Compute the amounts of each of the following (show your calculations).

After 6 years of its use, in the 7^th year, the company made a major overhaul of the equipment by incurring $1,300,000, which extends the useful life by another 8 years beyond its original useful life with zero residual value. Calculate annual depreciation on the machine from the 7^th year onward assuming that the company charges full year depreciation in the year of addition.