On July 1, year 1, Link Development Company purchased a tract of land for $900,000. Additional costs of $150,000 were incurred in subdividing the land during July through December year 1. Of the tract acreage, 70% was subdivided into residential lots as shown below and 30% was conveyed to the city for roads and a park.

Lot class	Number of lots	Sales price per lot
A	100	$12,000
B	100	8,000
C	200	5,000

Under the relative sales value method, the cost allocated to each Class A lot should be

the answer is $4,200.

Please explain in detail please, thank you.