Pumpkin Enterprises Began Operations on January 1, 20x1, with All

Multiple Choice

Pumpkin Enterprises began operations on January 1, 20x1, with all of its activities conducted from a single facility. The company's accountant concluded that the year's building depreciation should be allocated as follows: selling activities, 20%; administrative activities, 35%; and manufacturing activities, 45%. If Pumpkin sold 60% of 20x1 production during that year, what percentage of the depreciation would appear (either directly or indirectly) on the 20x1 income statement?

A) 27%.
B) 45%.
C) 55%.
D) 82%.
E) 100%.