Huffman Corporation Constructed a Building at a Cost of $20,000,000

Multiple Choice

Huffman Corporation constructed a building at a cost of $20,000,000. Weighted-average accumulated expenditures were $8,000,000, actual interest was $800,000, and avoidable interest was $400,000. If the salvage value 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) $470,000.
B) $490,000.
C) $510,000.
D) $670,000.