QS 22-21A (Algo) Joint cost allocation LO C2 A company purchases a 6,600-square-foot building for $400,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 1.350 square feet, will be rented for $2.00 per square foot Unit B contains 5.250 square feet and will be rented for $1.20 per square foot How much of the joint cost should be allocated to Unit A and to Unit B using the value basis of allocation? Rental value Percent of rentat value Numerator Denominator of Mkt Value Joint Cost Allocated cost Unit A Unit B Totals 0.00% Exercise 22-22A (Algo) Assigning joint costs LO C2 Home Properties is developing a subdivision that includes 480 home lots. The 210 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills, the 270 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $60.000 and for each Hiltop lot is $106,000. The developer acquired the land for $2.400,000 and spent another $1,700,000 on street and utilities improvements Assign the joint land and improvement costs of $4,100,000 to the Canyon section and the Hilltop section using the value basis of allocation (Do not round your intermediate calculations.) Sales Value Cost to Allocate Allocated Cost Quantity of Lots Percent of Sales Value Numerator Denominator % of Salos Value 0 Canyon section Hilltop section Totals 0 0