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

question 33

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.

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Definitions:

Intangible Resources

Non-physical assets that a company possesses, such as brand reputation, intellectual property, and human capital.

Organizational Behavior

The study of how people interact within groups and organizations, aiming to understand and improve behaviors at work.

Managing People

The practice of leading, organizing, and supporting employees in order to achieve organizational goals.

Behavioral Sciences

Academic disciplines, such as psychology and sociology, that study human behavior through observation and analysis.