Skysong Industries Inc. started construction of a manufacturing facility for its own use at an estimated cost of $11,000,000 on January 1, 2017. Skysong expected to complete the building by December 31, 2017. Skysong's debt, all of which was outstanding during the construction period, was as follows. - Construction loan-11\% interest, payable semiannually, issued December 31, 2016; \$5,500,000 - Long-term loan \#1 - 10\% interest, payable on January 1 of each year. Principal payable on January 1, 2019; $1,650,000 Long-term loan \#2-12\% interest, payable on December 31 of each year. Principal payable on December 31, 2025;$3,850,000 (a) Your answer is correct. Assume that Skysong completed the facility on December 31,2017 , at a total cost of $11,330,000, and the weighted-average amount of accumulated expenditures was $7,480,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% and round final answer to 0 decimal places, e.g. 5,275.) Avoidable Interest $ eTextbook and Media Attempts: 1 of 2 used Using multiple attempts will impact your score. 20% score reduction after attempt 1 (b) Compute the depreciation expense for the year ended December 31, 2018. Skysong estimated the facility's useful life to be 25 years with a salvage value of $1,100,000. Skysong elected to depreciate the facility on a straight-line basis