Answer to Question #260388 in Accounting for yas

Question

 

Lee Company reported the following data for the current year:

Legal and audit fees                                                1,700,000

Rent for office space                                               2,400,000

Interest on inventory loan                                        2,100,000

Loss on abandoned data processing equipment           350,000

 

What amount should be classified as general and administrative expense?

 

Answer 1

Administrative:

Legal and audit fees 1,700,000

Rent for office space 2,400,000

General:

Interest 2,100,000

Loss equipment 350,000