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QS 22-19C Joint cost allocation LO C3 A company purchases a 5,280-square-foot commercial building for $410,000 and spends an additional $58,000 to divide the space
QS 22-19C Joint cost allocation LO C3 A company purchases a 5,280-square-foot commercial building for $410,000 and spends an additional $58,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 1,080 square feet, will be rented for $2.50 per square foot. Unit B contains 4,200 square feet and will be rented for $1.50 per square foot. points How much of the joint cost should be assigned to Unit B using the value basis of allocation? eBook Market Value Percent of Market Value Joint Cost Apportioned Cost Print References $ Unit A Unit B Totals 2,700 6,300 9,000 Numerator Denominator % of Mkt Value $ 2,700 $ 9,000 40.00% 6,300 9,000 60.00% 100.00% x X $ 468,000 $ 468,000 = $ $ 468,000
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