Skysong Furniture started construction of a combination office and warehouse building for its own use at an estimated cost of 4,380,000 on January 1, 2022. Skysong expected to complete the building by December 31,2022 . Skysong has the following debt obligations outstanding during the construction period. (a) Assume that Skysong completed the office and warehouse building on December 31, 2022, as planned at a total cost of 4,654,000. The following expenditures were made during the period forthis project: January 1, 895,000; April 1, 1,295,000; July 1, 1,695,000; and October 1, 560,000. Excess funds from the construction loans were invested during the period and earned 19,800 of investment income. Compute the amount of borrowing costs to be capitalized for this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58\% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.) Borrowing costs (b) Compute the depreciation expense for the year ended December 31, 2023. Skysong 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 297,000. (Round answer to 0 decimal places, e.s. 5,275.)