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A company purchases a 26,000-square-foot building for $769,000. The building has two separate rental units. Unit A, which has the desirable location on the
A company purchases a 26,000-square-foot building for $769,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 6,500 square feet, will be rented for $3.20 per square foot. Unit B contains 19,500 square feet and will be rented for $1.60 per square foot. Compute the amount of joint cost that should be allocated to Unit A using the value basis of allocation: Multiple Choice $461,400. $307,600. $192.250.
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