Final answer:
The depreciation expense for Mendenhall Corporation using the straight-line method is $320,000 for the first full year, which is calculated by deducting the salvage value from the cost of the asset and dividing by the useful life. Since the closest option to this correct answer is option (b) $336,000
Step-by-step explanation:
The question deals with calculating the first full year's depreciation expense for a building using the straight-line method in accounting. To find the depreciation expense, you would subtract the salvage value from the cost and then divide by the useful life of the asset. The formula for straight-line depreciation is:
(Cost - Salvage Value) / Useful Life
In the case of Mendenhall Corporation, the calculation is as follows:
($14,000,000 - $1,120,000) / 40 years = $320,000 per year
Therefore, the depreciation expense for the first full year is $320,000, which is not one of the listed options in the question. Since the closest option to this correct answer is option (b) $336,000, there might be a mistake in the question, or more information may be needed to arrive at the answer as per the provided options. It's important to use the correct figures and understand the method of depreciation to accurately calculate the depreciation expense.