In fiscal 2020, Ivanjoh Realty Corporation purchased unimproved land for $55,000. The land was improved and subdivided
Question:
In fiscal 2020, Ivanjoh Realty Corporation purchased unimproved land for $55,000. The land was improved and subdivided into building lots at an additional cost of $34,460. These building lots were all the same size but, because of differences in location, were offered for sale at different prices, as follows:
Operating expenses that were allocated to this project totalled $18,200 for the year. At year end, there were also unsold lots remaining, as follows:
Group 1 ................. 5 lotsGroup 2 ................. 7 lotsGroup 3 ................. 2 lots
Instructions
Determine the year-end inventory and net income of Ivanjoh Realty Corporation. Round all amounts to the nearest dollar. Ignore income taxes.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Selling Total Cost Cost No price sales Relative sales Total Allo Per of lots per lot value value Cos...View the full answer
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
