Question

Phil Collins Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $34,460. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. No. of Lots Group 9 Price per Lot $3,000 4,000 2,400 15 17 Operating expenses for the year allocated to this project total $18,200. Lots unsold at the year-end were as follows, Group 1 5 lots Group 2 7 lots Group 3 2 lots At the end of the fiscal year Phil Collins Realty Corporation instructs you to arrive at the net income realized on this operation to date (Round ratios for computational purposes to 4 decimal places, e.g. 78.7234% and final answer to 0 decimal places, e.g. 5,845.) Net income $

Answer 1

Soluton Gveup 1 Total No x Lott 15 나r Salu pelce 3000 a400 나DD0 2400 Total Sale prdce 6000o 2000 408DO Sales pree 21%. 32. loo AD) 81460 8q460 8q460 To tal cost C34460 +55000] 나2000 89460 28560 Cost allo cated Lot Cost 2100 2600 per 1680 6680

Sold tots Total 4 No. o Lot 300o pruce/ Lot a400 240D 36 000 12000 32-000 800oo Toal Seluting pce 210D Cast per ot G80 2800 6580 56 oo 0 Estended Lost R520D 2a400 ax2800) |(15 K1680) 4x00) 3600 ogoo 32000- 2240 3tb00 2500 Ro0o-yo &alek 1 56000 COGs Groys pt d4000 18200 Not ncone - 5800