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On January 1, 2020 Spires Company began construction of a new warehouse. The building was finished and ready for use on December 31, 2020. During

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On January 1, 2020 Spires Company began construction of a new warehouse. The building was finished and ready for use on December 31, 2020. During 2020 Spires spent $1,200,000 on the warehouse. Weighted average accumulated expenditures (WAAE) were $800,000. Spires had $5,000,000 in 10% bonds outstanding throughout 2020. Spires had no other debt. How much interest should be added to the cost of the building and be depreciated over time? a. $120,000 Ob. $380,000 O c. $500,000 Od $420,000 e. $80,000

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