lashcard, Inc began construction of a new building on January 1st, 2016 at an estimated cost of $4,000,000. Flashcard completed construction by December 31, 2016 - just in time

for the New Year's Eve party (shocking - I know).

The weighted average expenditures for the building construction for 2016 was $2,750,000.

Flashcard, Inc. has the following debt obligations:

Construction Loan for Building - 9% interest payable annually - $2,000,000

Short Term Loan - 10% interest, payable monthly, and principle

Payable at maturity on April 30, 2020- $1,000,000

Long Term Loan -12% interest, annually on January 1 of

each year. Principle due on January 1, 2022 - $4,000,000

(A) Compute the amount of interest that should be capitalized for this construction

(B) Assuming the building was completed as planned at a total cost of $4,300,000 and has a salvage value of $400,000, calculate the depreciation expense using the straight line method and a useful life of 30 years (round if necessary).