Harbor Corp currently leases a corporate suite in an office building for a cost of $300,000 a year. Only 81% of the corporate suite is currently being used. A start-up business has proposed a plan that would use the other 19% of the suite and increase the overall costs of maintaining the space by $28,139. If the stand-alone method were used, what amount of cost would be allocated to the start-up business? (Round the final answer to the nearest dollar.)
A) $79,793
B) $57,000
C) $62,346
D) $51,654

Question

Quizplus · Accepted Answer

Amount allocated = $328,139 × 0.19 = $62,346

Harbor Corp Currently Leases a Corporate Suite in an Office