Nance Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2016, included the following expense accounts:

Accounting and legal fees $240,000

Advertising 300,000

Freight-out 150,000

Freight-in 20,000

Interest 120,000

Loss on sale of long-term investments 60,000

Cost of goods sold 530,000

Officers' salaries 360,000

Rent for office space 320,000

Sales salaries and commissions 220,000

One-half of the rented premises is occupied by the sales department.

How much of the expenses listed above should be included in Nance's selling expenses for 2016?

a. $520,000.

b. $670,000.

c. $680,000.

d. $830,000.

How much of the expenses listed above should be included in Nance's general and administrative expenses for 2016?

a. $760,000.

b. $820,000.

c. $880,000.

d. $940,000