Question
In fiscal 2020, Novak Realty Corporation purchased unimproved land for $57,500. The land was improved and subdivided into building lots at an additional cost of
In fiscal 2020, Novak Realty Corporation purchased unimproved land for $57,500. The land was improved and subdivided into building lots at an additional cost of $36,400. These building lots were all the same size but, because of differences in location, were offered for sale at different prices, as follows:
Group No. of Lots Price per Lot
1 8 $3,430
2 18 4,400
3 21 2,490
Operating expenses that were allocated to this project totalled $19,300 for the year. At year end, there were also unsold lots remaining, as follows:
Group 1: 5 lots
Group 2: 6 lots
Group 3: 3 lots
Determine the year-end inventory and net income of Novak Realty Corporation. Ignore income taxes. (Round computations to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places. e.g. 5,275.)
Year-end inventory $
Net income / (Loss) $
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