The Following Items Were Among Those That Were Reported on Nen

question 46

Multiple Choice

The following items were among those that were reported on Nen Co.'s income statement for the year ended December 31, 2007: $$\begin{array} { l r } \text { Legal and audit fees } & \$ 130,000 \\\text { Rent for office space } & 180,000 \\\text { Interest on inventory floor plan } & 210,000 \\\text { Loss on abandoned equipment used in operations } & 35,000\end{array}$$ The office space is used equally by Nen's sales and accounting departments.What amount of the above-listed items should be classified as general and administrative expenses in Nen's multiple-step income statement?

• A)$220,000.
• B)$255,000.
• C)$310,000.
• D)$430,000.

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Definitions:

Aorta

Originating from the heart's left ventricle and stretching to the abdomen, it is the body's biggest artery, responsible for delivering oxygen-rich blood to the circulatory system.

Right Ventricle

A chamber of the heart that pumps deoxygenated blood to the lungs for oxygenation via the pulmonary artery.

Ventricular Contraction

The phase of the cardiac cycle in which the ventricles of the heart contract, pumping blood out of the chambers.

Apex

The top or highest part of something, such as the pointed end of the heart that points downward to the left.