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9 1 points eflook QS 24-21A (Algo) Joint cost allocation LO C2 A company purchases a 7,560-square-foot building for $345,000. The building has two separate
9 1 points eflook QS 24-21A (Algo) Joint cost allocation LO C2 A company purchases a 7,560-square-foot building for $345,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 2,160 square feet, will be rented for $2.00 per square foot Unit B contains 5,400 square feet and will be rented for $1.20 per square foot. How much of the joint cost should be allocated to Unit A and to Unit B using the value basis of allocation? Rental value Percent of rental value Joint Cost Allocated cost Numerator Denominator Hat % of Mat Value Unit A 4,320 10,800 100 Unit B 6,480) 10,800 Totals $ 10.000 0.00% Reference Check my work
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