Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Market Value Percent of Market Value Cost to Allocate Allocated Cost Quantity of Lots Average Lot Cost
Numerator Denominator % of Mkt Value
Canyon section 0 0
Hilltop section 0 0
Totals 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Principles And Practice Of Auditing

Authors: George Puttick, Sandra Van Esch

8th Edition

0702156914, 978-0702156915

More Books

Students also viewed these Accounting questions