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Need help with both questions Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots
Need help with both questions
Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $99,000 each; 125 are street frontage lots and will sell for $69.000. The developer acquired the land for $1,840,000 and spent another $1,440,000 on street and utilities improvement Compute the amount of joint cost to be allocated to the golf course lots using value basis. Multiple Choice $1,607,200 $1,804,640 $1.448,800 $2,045,640 $1,528,480 A lumber mill bought a shipment of logs for $42,000. When cut, the logs produced 1,000,000 board feet of lumber in the following grades. Compute the cost to be allocated to Type 1 and Type 2 lumber, respectively, if the value basis is used. (Do not round your intermediate calculations.) Type 1 - 400,000 board feet priced to sell at $0.12 per board foot Type 2 - 400,000 board feet priced to sell at $0.06 per board foot Type 3 - 200,000 board feet priced to sell at $0.04 per board foot Multiple Choice $42.000, $24,000 $16,000 $16,000 $24,000. $8,000. $25,200: $12,600. $10,944 $4,200 Step by Step Solution
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