4. Major Industries Inc. started construction of a manufacturing facility for its own use at an estimated cost of $10,000,000 on January 1, 2022. Major expected to complete the building by December 31, 2022. Major's debt, all of which was outstanding during the construction period, was as follows. i. Construction loan, 11% interest, payable semi-annually, issued December 31, 2021; $5,000,000 11. 111. Long-term loan #1, 10% interest, payable on January 1 of each year. Principal payable on January 1, 2022; $1,500,000 Long-term loan #2, 12% interest, payable on December 31 of each year. Principal payable on December 31, 2030; $3,500,000 Instructions a) Compute the weighted average interest rate of the general long-term loans. b) Assume that Major completed the facility on December 31, 2022, at a total cost of $10,300,000 (excluding interest), and the average carrying amount of expenditures was $6,800,000. Compute the interest to be capitalized on this project. c) Compute the depreciation expense for the year ended December 31, 2023. Major estimated the facility's useful life to be 25 years with a salvage value of $1,000,000. Major elected to depreciate the facility on a straight-line basis. a) Weighted-average interest rate Principle Interest Total Weighted-average interest rate (Computation is shown here) b) Average Carrying Amount Interest to be Interest Rate Capitalized Amount allocated to specific borrowings Amount allocated to general borrowings Total Original cost Interest capitalized Total cost