QS 24-19C Joint cost allocation LO C3

A company purchases a 12,880-square-foot commercial building for $365,000 and spends an additional $100,000 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 1,680 square feet, will be rented for $1.50 per square foot. Unit B contains 11,200 square feet and will be rented for $0.90 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation?

	Market Value	Percent of Market Value				Joint Cost		Apportioned Cost
		Numerator	Denominator	% of Mkt Value
Unit A
Unit B
Totals				0.00%