The Following Items Were Among Those Reported on Harry's Ltd

Multiple Choice

The following items were among those reported on Harry's Ltd.'s income statement for the year ended December 31, 2020: $\begin{array}{llcc} \text {Legal and audit fees........................... } &\$200,000 \\ \text { Rent for office space.......................... } &470,000\\ \text {interest on inventory loan.................... } &496,000\\ \text { Loss on abandoned equipment used in operations....... } &82,000\\\end{array}$
The office space is used equally by Harry's sales and accounting departments. What amount should be classified as general and administrative expenses in Harry's multiple-step income statement for 2020?

A) $235,000
B) $435,000
C) $670,000
D) $931,000