Huffman Corporation constructed a building at a cost of $20,000,000. Average accumulated expenditures were $8,000,000, actual interest

Question:

Huffman constructed a building at a cost of $20,000,000. Average accumulated expenditures were $8,000,000, actual interest was $1,200,000, and avoidable interest was $800,000. If the is $1,600,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is
a) $480,000.
b) $490,000.
c) $520,000.
d) $680,000.
Salvage Value
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