Reference no: EM132601441

Question - Parker Corporation reports operating expenses in 2 categories: (1) setting and (2) general and administrative. The adjusted trial balance at December 31, 2003 included the following accounts:

Accounting and Legal Fees $175,000

Advertising 150,000

Freight-out 75,000

Interest 60,000

Loss on sale of long-term investment 30,000

Administrator's salaries 225,000

Rent for office space 180,000

Sales salaried and commissions 140,000.

One half of the rented premises is occupied by the sales department.

Q1. How much of these expenses listed above should be included in Parker's selling expenses for 2005?

a. $290,000

b. $365,000

c. $380,000

d. $455,000

Q2. How much of expenses listed above should be included in Parker's general and administrative expenses for 2005?

a. $490,000

b. $520,000

c. $550,000

d. $580,000