The following expenses and loss were among those incurred by Mitzer Corporation during 2014:

Rent for office space

$660,000

Loss on sale of office furniture

55,000

Interest

132,000

Accounting and legal fees

352,000

Freight-out

70,000

One-half of the rented premises is occupied by the sales department. How much of the items listed above should be classified as administrative expenses in Mitzer”s income statement for 2014?

  1. $682,000.
  2. $869,000.
  3. $884,000.
  4. $939,000.