SageFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $12,500,000 on January 1, 2020, Sage expected to complete the building by December 31, 2020. Sage has the following debt obligations outstanding during the construction period. Construction loan-12% Interest, payable semiannually, Issued December 31, 2019 $5,000,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 3,750,000 Long-term loan-11% Interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,500,000 (b) Compute the depreciation expense for the year ended December 31, 2021. Sage 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 $750,000. (Round answer to 0 decimal places, 23. 5.275.) $ Depreciation Expense