Larkspur Industries Inc started construction of a manufacturing facility for its own use at an estimated cost of $9,800,000 on January 1,2017. Larkspur expected to complete the building by December 31, 2017. Larkspur's debt, all of which was outstanding during the construction period, was as follows. - Construction loan-11\% interest, payable semiannually, issued December 31,2016;$4,900,000 - Long-term loan \#1-10\% interest, payable on January 1 of each year. Principal payable on January 1, 2019; \$1,470,000 - Long-term loan \#2-12\% interest, payable on December 31 of each year. Principal payable on December 31, 2025: $3,430,000 Assume that Larkspur completed the facility on December 31, 2017, at a total cost of $10,094,000, and the weighted-average amount of accumulated expenditures was $6,664,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, es. 7.58% and round final answer to 0 decimal ploces, e. 5.275. Avoidable interest $ Compute the depreciation expense for the year ended December 31, 2018. Larkspur estimated the facility's useful life to be 25 years with a salvage value of $980,000. Larkspur elected to depreciate the facility on a straight-line basis. Depreciation Expense