Use the Following Information for the Following Questions One-Half of the Rented Premises Is Occupied by the Sales

question 5

Multiple Choice

Use the following information for the following questions. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2020, included the following expense accounts:
$\begin{array}{llcc} \text { Accounting and legal fees......................... } & \$120,000 \\ \text {Advertising............................................... } &150,000\\ \text { Freight-out............................................... } &75,000\\ \text { Interest.................................................... } &60,000\\ \text { Loss on sale of long-term investments......... } &30,000\\ \text {Officers' salaries.......................................... } &180,000\\ \text { Rent for office space................................... } &160,000\\ \text { Sales salaries and commissions................... } &110,000\\ \text { } &\\\end{array}$
One-half of the rented premises is occupied by the sales department.
-How much of the expenses listed above should be included in Oskar's general and administrative expenses for 2020?

• A) $380,000
• B) $410,000
• C) $440,000
• D) $470,000

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Definitions:

Adjustable-Rate Mortgage

A mortgage loan with an interest rate that can fluctuate over time based on changes in a corresponding financial index that's attached to the loan.

Government Backing

Support or endorsement provided by a government, which can include financial guarantees, subsidies, or other forms of assistance.

Ordinary Course

Actions and transactions that are routine or normal for a particular business or industry, typically excluding extraordinary or unusual activities.

Security Interest

A legal claim or lien on collateral that gives a lender the right to repossession if the borrower defaults on the agreement.