Question
A company purchases a 10,120-square-foot building for $390,000. The building has two separate rental units. Unit A, which has the desirable location on the
A company purchases a 10,120-square-foot building for $390,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 1,320 square feet, will be rented for $1.50 per square foot. Unit B contains 8,800 square feet and will be rented for $0.90 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? Unit A Unit B Totals Rental value Percent of rental value Joint Cost Allocated cost % of Mkt Numerator Denominator Value 0.00%
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