Question
Heart & Home Properties is developing a subdivision that includes 480 home lots. The 250 lots in the Canyon section are below a ridge and
Heart & Home Properties is developing a subdivision that includes 480 home lots. The 250 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 230 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $44,000 and for each Hilltop lot is $104,000. The developer acquired the land for $2,200,000 and spent another $3,000,000 on street and utilities improvements. Assign the joint land and improvement costs to the lots using the value basis of allocation and determine the average cost per lot. (Do not round your intermediate calculations.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started