Groucho Corp One-Half of the Rented Premises Is Occupied by the Sales

question 120

Multiple Choice

Groucho Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2020, included the following accounts: $\begin{array}{llcc} \text { Accounting and legal fees......................... } & \$140,000 \\ \text {Advertising............................................... } &160,000\\ \text { Freight-out............................................... } &80,000\\ \text { Interest.................................................... } &70,000\\ \text { Loss on sale of long-term investments......... } &30,000\\ \text {Officers' salaries.......................................... } &225,000\\ \text { Rent for office space................................... } &220,000\\ \text { Sales salaries and commissions................... } &170,000\\ \text { } &\\\end{array}$

One-half of the rented premises is occupied by the sales department. Groucho's total selling expenses for 2020 are

• A) $520,000.
• B) $440,000.
• C) $410,000.
• D) $350,000.

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