A company rents a building with a total of 100,000 square feet, which is evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate for space on the second floor. The total monthly rent for the building is $30,000. How much of the monthly rental expense should be allocated to a department that occupies 17,000 square feet on the first floor? (Do not round your intermediate calculations.) A. $8,500. B. $3,400. C. $10,200. D. $5,100. E. $6,800.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
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A company rents a building with a total of 100,000 square feet,
which is evenly divided between two floors. The company allocates
the rent for space on the first floor at twice the rate for space on the
second floor. The total monthly rent for the building is $30,000. How
much of the monthly rental expense should be allocated to a
department that occupies 17,000 square feet on the first floor? (Do
not round your intermediate calculations.)
A. $8,500.
B. $3,400.
C. $10,200.
D. $5,100.
E. $6,800.
Transcribed Image Text:A company rents a building with a total of 100,000 square feet, which is evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate for space on the second floor. The total monthly rent for the building is $30,000. How much of the monthly rental expense should be allocated to a department that occupies 17,000 square feet on the first floor? (Do not round your intermediate calculations.) A. $8,500. B. $3,400. C. $10,200. D. $5,100. E. $6,800.
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