Waterway Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,981,900 on January 1, 2017. Waterway expected to complete the building by December 31, 2017. Waterway has the following debt obligations outstanding during the construction period.

Construction loan-10% interest, payable semiannually, issued December 31, 2016 $2,000,100

Short-term loan-8% interest, payable monthly, and principal payable at maturity on May 30, 2018 $1,595,800

Long-term loan-9% interest, payable on January 1 of each year. Principal payable on January 1, 2021 $1,002,900

Assume that Waterway completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,251,100, and the weighted-average amount of accumulated expenditures was $3,799,100. Compute the avoidable interest on this project.

Avoidable Interest $ . - ?

Compute the depreciation expense for the year ended December 31, 2018. Waterway 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 $297,300.

Depreciation Expense $ -?