Mendenhall Corporation Constructed a Building at a Cost of $10,000,000

Multiple Choice

Mendenhall Corporation constructed a building at a cost of $10,000,000. Weighted-average accumulated expenditures were $4,000,000, actual interest was $400,000, and avoidable interest was $200,000. 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) $235,000.
B) $240,000.
C) $255,000.
D) $335,000.