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AICPA CPA-Financial Exam - Topic 3 Question 119 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 119
Topic #: 3
[All CPA-Financial Questions]

Brock Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative.

The adjusted trial balance at December 31, 1989 included the following expense and loss accounts:

One-half of the rented premises is occupied by the sales department. Brock's total selling expenses for 1989 are:

Show Suggested Answer Hide Answer
Suggested Answer: A

Note: Only one-half of rent for office space was used for sales office.

Choice 'a' is correct. $480,000.


by Alline at Nov 24, 2025, 02:46 AM

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Mitzie
9 hours ago
Not so sure about that, I lean towards B) $400,000.
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Estrella
6 days ago
I think it's definitely A) $480,000.
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Carla
11 days ago
Selling expenses are usually a big part of the budget.
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Nicholle
16 days ago
This question is a real head-scratcher. I'll go with the funniest option, C.
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Dewitt
21 days ago
I'm torn between B and D. Decisions, decisions...
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Alisha
26 days ago
C is the way to go, no doubt about it.
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Adaline
1 month ago
Option D looks good to me. Gotta love those selling expenses!
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Floyd
1 month ago
I feel like the answer might be around $400,000, but I need to double-check how we allocate the rent for the sales department.
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Joanne
1 month ago
I'm a bit unsure about how to split the rent. Did we include the rent in the selling expenses or just the direct costs?
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Gayla
2 months ago
I remember we did a similar question about allocating expenses based on department usage. I think I need to calculate the selling expenses carefully.
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Gerald
2 months ago
This seems pretty straightforward. I'm going to focus on accurately splitting the rent and utilities, since that's the key to getting the right answer. Once I have that, the rest should be pretty straightforward.
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Caren
2 months ago
Okay, I think I've got a plan. I'll start by calculating the total rent and utilities expenses, then split them 50/50 between selling and general/administrative. From there, I can add up the other selling expenses to get the final total.
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Aron
2 months ago
Hmm, this seems straightforward. I'll go with option B.
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Ozell
2 months ago
I think it's A) $480,000. The sales department uses half the space.
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Felicitas
3 months ago
C) $370,000 could be right. Need to consider all costs.
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Dana
3 months ago
I think the total selling expenses should include all the selling-related costs, but I can't recall if we add half of the rent or just the direct selling expenses.
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Desmond
3 months ago
Hmm, I'm a bit confused about how to approach this. Do I need to calculate the total expenses first, then allocate the rent and utilities? Or should I start by splitting those two items?
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Carole
3 months ago
This looks like a straightforward allocation problem. I'll need to figure out how to split the rent and utilities expenses between selling and general/administrative based on the information provided.
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Alberto
2 months ago
I think we should allocate half of the rent to selling expenses.
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