1. Kim Company reported the following data for the current year:
   • Legal and audit fees: $1,700,000
   • Rent for office space: $2,400,000
   • Interest on inventory loan: $2,100,000
   • Loss on abandoned data processing equipment: $350,000
   • Freight in: $1,750,000
   • Freight out: $1,600,000
   • Officers' Salaries: $1,500,000
   • Insurance: $850,000
   • Sales representative salaries: $2,150,000
   • Research and development expense: $1,000,000
   • The office space is used equally by the sales and accounting departments.

Requirements:

• What amount should be classified as general and administrative expenses?