On January 1, 2020, ABC, Inc. borrowed $10,000,000 at 9% to begin construction on an office building in the Hato Rey banking area. ABC has no other debt. During 2020, weighted-average accumulated expenditures related to construction totaled $3,750,000. How much should the business report as interest expense on the 2020 Statement of Income and Expenses? Select one:

a. $562,500

b. $0

c. $337,500

d. $900,000

On January 1, 2023, ABC, Inc.'s Accumulated Depreciation account showed a balance of $280,000. On December 31, 2023, after correctly recording all adjustment entries, the Accumulated Depreciation account showed a balance of $300,000. During 2023, equipment costing $94,000 was sold for cash for $55,000, resulting in a Loss on Disposal of $3,000. Assume that no other assets were disposed of during the year. What was the depreciation expense that ABC reported in the Statement of Income and Expenses for 2023?

Select one:

a. $36,000

b. $56,000

c. $62,000

d. $20,000