BestCare HMO, an investor-owned company, constructed a new building to replace its outdated facility. The new building was completed on January 1, 2015, and Bright Horizons began recording depreciation immediately. The total cost of the new facility was $12,000,000, comprising (a) $6 million in construction costs and (b) $6 million for the land. Bright Horizons estimated that the new facility would have a useful life of 15 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. B. Assuming a 40 per cent income tax rate, how much did Bright Horizons save in income taxes for the year ended Decemb