Question
QS 9-21A (Algo) Joint cost allocation LO C2 A company purchases a 8,190-square-foot building for $415,000. The building has two separate rental units. Unit
QS 9-21A (Algo) Joint cost allocation LO C2 A company purchases a 8,190-square-foot building for $415,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 2,340 square feet, will be rented for $2.00 per square foot Unit B contains 5,850 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? Unit A Unit 8 Totals Rental value Percent of rental value Allocated Joint Cost cost Numerator Denominator % of Mkt Value
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