Question #1 Silverline Freight Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,540,000 on January 1, 2017. Silverline expected to complete the building by December 31, 2017. Silverline had the following debt obligations outstanding during the construction period: Construction loan: 6.00% interest, payable monthly, issued January 1, 2017 in the amount of $1,800,000 Short-term loan: 7% interest, payable monthly; principal payable at maturity on May 30, 2019 in the amount of $600,000 Long-term loan: 5.5% interest, payable on January 1 of each year; principal payable on January 1, 2021 in the amount of $800,000 Required

B) Compute the depreciation expense for the year ended December 31, 2018. Silverline elected to depreciate the building on a straight-line basis and estimates that it has a useful life of 30 years with $100,000 salvage value. Round your final calculation to the nearest whole dollar.