Kingbird Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $13,000,000 on January 1, 2025. Kingbird expected to complete the building by December 31, 2025. Kingbird has the following debt obligations outstanding during the construction period.

Construction loan12% interest, payable semiannually, issued December 31, 2024		$5,200,000
Short-term loan10% interest, payable monthly, and principal payable at maturity on May 30, 2026		3,900,000
Long-term loan11% interest, payable on January 1 of each year; principal payable on January 1, 2029		2,600,000

(b)

Compute the depreciation expense for the year ended December 31, 2026. Kingbird 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 $780,000. (Round answer to 0 decimal places, e.g. 5,275.)

Depreciation expense

$enter the depreciation expense in dollars rounded to 0 decimal places