Answer the Following Questions Using the Information Below

question 63

Multiple Choice

Answer the following questions using the information below:
Monster Vehicle Rental Corporation has two departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in various ways.

-If the facility lease expense of $350,000 is allocated on the basis of vehicles in the fleet, the amount allocated to the Truck Rental Department would be:

• A)$245,000
• B)$105,000
• C)$200,000
• D)$150,000

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Definitions:

Stock Investments

Financial assets representing ownership in a company, which may provide dividends and entail voting rights.

Debt Investments

Investments made through the purchase of bonds or loans, providing the investor with interest income and the return of principal over time.

Interest Revenue

Income earned from lending money or from investments in interest-bearing accounts.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest have been deducted from total revenue.