Final answer:
General and administrative expenses for Dye Co. would include Legal and audit fees and Rent for office space, totaling $1,240,000.
Step-by-step explanation:
The student has listed several expenses related to Dye Co.'s income statement and is trying to determine the total amount classified as general and administrative expenses. Given the provided information, we see specifically two items that would typically fall under general and administrative expenses: Legal and audit fees ($520,000), and Rent for office space ($720,000). The interest on inventory floor plan ($840,000) and loss on abandoned equipment ($140,000) are not classified as part of general and administrative expenses.
To calculate the total general and administrative expenses, we add up the Legal and audit fees with the Rent for office space: $520,000 + $720,000 = $1,240,000. Therefore, the total amount that should be classified as general and administrative expenses is $1,240,000.