Riverbed Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of 4,440,000 on January 1, 2022. Riverbed expected to complete the building by December 31, 2022. Riverbed has the following debt obligations outstanding during the construction period.

Construction loan-10% interest, payable semiannually, issued December 31, 2021		1,820,000
Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2023		1,456,000
Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2026		910,000

Compute the depreciation expense for the year ended December 31, 2023. McPherson elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a residual value of 300,000.