ABC Skilled Nursing Center, an investor-owned company, constructed a new building to replace its outdated facility. The new building was completed on January 1, 2020, ABC Nursing Center began recording depreciation immediately. The total cost of the new facility was $20,000,000, comprising (a) $18,000,000 in construction cost and (b) $2,000,000 for the land. ABC Skilled Nursing Center estimated that the new facility would have a useful life of 20 years. The salvage value of the building at the end of its useful life was estimated to be $1,000,000 a. Using the straight-line method of depreciation, calculate annual depreciation expense on the new facility. Hint: Land is not subject to depreciation 1