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?
- $682,000.
- $869,000.
- $884,000.
- $939,000.