Answer the following questions using the information below: The Cold Spring Harbor Corporation currently leases a corporate suite in an office building for a cost of $180,000 a year. Only 70% of the corporate suite is currently being used. A start-up business has proposed a plan that would use the other 30% of the suite and increase the overall costs of maintaining the space by $20,000. If the stand-alone method were used, what amount of cost would be allocated to the start-up business?

Group of answer choices

$60,000

$74,000

$20,000

$54,000

2.

If the incremental method were used, what amount of cost would be allocated to the start-up business?

Group of answer choices

$20,000

$74,000

$60,000

$54,000