A lumber mill paid $105,000 for logs that produced 140,500 board feet of lumber in 3 different grades and amounts as follows:

Grade	Production					Market Price
Structural	22,500		board feet		$	2,000/1,000		bd. ft.
No. 1 Common	46,000		board feet		$	1,500/1,000		bd. ft.
No. 2 Common	72,000		board feet		$	500/1,000		bd. ft.

Compute the portion of the $105,000 joint cost to be allocated to No. 2 Common if the value basis is used.

Multiple Choice

• $35,000.

• $0.

• $52,500.

• $105,000.

• $25,200.