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A company purchases a 7920-square-foot building for $325.000 The building has two separate rental units. Unit A, which has the desirable location on the comer
A company purchases a 7920-square-foot building for $325.000 The building has two separate rental units. Unit A, which has the desirable location on the comer and contains 1620 square feet, will be rented for $2.50 per square foot. Unit B contains 6,300 square feet and will be rented for $150 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 Allocated Perontofrental value Numerator Denominator of Mkt Value Joint Cost Unit A Unit Totals
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