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Blossom Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $14,000,000 on January 1, 2025. Blossom expected to complete the building by December 31 , 2025 . Blossom has the following debt obligations outstanding during the construction period. Construction loan-12\% interest, payable semiannually, issued December 31,2024 $5,600,00C Short-term loan- 10% interest, payable monthly, and principal payable at maturity on May 30,2026 4,200,006 Long term loan-11\% interest, payable on January 1 of each year; principal payable on January 1,2029 2,800,006 (a) Assume that Blossom completed the office and warehouse building on December 31,2025 , as planned, at a total cost of $14,560,000, and the weighted-average amount of accumulated expenditures was $10,080,000. Compute the avoidable interest on 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.) Avoidable interest Compute the depreciation expense for the year ended December 31, 2026. Blossom 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 $840,000. (Round answer to 0 decimal places, e.g. 5,275 .) Depreciation expense

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