Brock Corp. reports operating expenses in two categories: (1) selling, and (2) general and administrative. The adjusted trial balance at December 31, 2006, included the following expense and loss accounts:
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|
Accounting and legal fees |
$120,000 |
|
Advertising |
150,000 |
|
Freight-out |
80,000 |
|
Interest |
70,000 |
|
Loss on sale of long-term investment |
30,000 |
|
Officers’ salaries |
225,000 |
|
Rent for office space |
220,000 |
|
Sales salaries and commissions |
140,000 |
One-half of the rented premises is occupied by the sales department.
Brock’s total selling expenses for 2006 are
- $480,000
- $400,000
- $370,000
- $360,000