CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
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Oceanic Enterprises rents a building with a total of 120,000
square feet, 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 $36,000. How much of the monthly rental expense
should be allocated to a department that occupies 20,000
square feet on the first floor? (Do not round your intermediate
calculations.)
A. $12,000.
B. $6,000.
C. $15,000.
D. $8,000.
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Transcribed Image Text:Oceanic Enterprises rents a building with a total of 120,000 square feet, 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 $36,000. How much of the monthly rental expense should be allocated to a department that occupies 20,000 square feet on the first floor? (Do not round your intermediate calculations.) A. $12,000. B. $6,000. C. $15,000. D. $8,000.
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