On July 1, year 2, Flip Development Co. purchased a tract of land for $1,200,000. Flip incurred additional cost of $300,000 during the remainder of year 2 in preparing the land for sale. The tract was subdivided into residential lots as follows: Lot class Number of lots Sales price per lot A 100 $24,000 B 100 16,000 C 200 10,000 Using the relative sales value method, what amount of costs should be allocated to the Class A lots?