Technoid Inc. began constructing a new warehouse for its operations during the current year. In the year Technoid incurred interest of $20,000 on a five-year bank loan, and interest on a construction loan for the warehouse of $80,000. Interest computed on the average accumulated expenditures for the warehouse construction was $40,000. What amount of interest should Technoid expense for the year?

Multiple Choice

• $60,000.

• $100,000.

• $20,000.

• $140,000.