Cressy Construction Company purchased land for $4.2 million. Subsequent to the purchase date Cressy
paid $600,000 for land preparation as they were creating lots to sell for a new office park.
When recording the sale of each lot what value should be used for the cost? Round to the nearest Cent
NOTE: the streets were constructed previously and now owned by the city.
A. What amount should be recorded for cost of each A lot?
B. What amount should be recorded for cost of each B lot?
C. What amount should be recorded for cost of each C lot?