Question
Phil Collins Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost
Phil Collins Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $28,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows.
Group | No. of Lots | Price per Lot |
1 | 8 | $3600 |
2 | 17 | $4800 |
3 | 20 | $2400 |
Operating expenses for the year allocated to this project total $16,000. Lots unsold at the year-end were as follows.
Group 1 | 3 lots |
Group 2 | 6 lots |
Group 3 | 2 lots |
At the end of the fiscal year Phil Collins Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Round ratios for computational purposes to 4 decimal places, e.g. 78.7234%. Round cost per lot and final answer to 0 decimal places, e.g. 5,845.)
Net Income: $__________
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