RA 13

Home Properties is developing a subdivision that includes 490 home lots. The 170 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 320 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $59,000 and for each Hilltop lot is $94,000. The developer acquired the land for $2,300,000 and spent another $1,500,000 on street and utilities improvements. Assign the joint land and improvement costs of $3,800,000 to the Canyon section and the Hillop section using the value basis of allocation. (Do not round your intermediate calculations.)