Ben Gordon Corporation Constructed a Building at a Cost of $10,000,000.Average

Multiple Choice

Ben Gordon Corporation constructed a building at a cost of $10,000,000.Average accumulated expenditures were $4,000,000, actual interest was $600,000, and avoidable interest was $300,000.If the salvage value is $800,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is

A) $237,500.
B) $245,000.
C) $257,500.
D) $337,500.