Relative sales Value

Apple Corporation purchased a tract of unimproved land for $610,000. This land was improved and subdivided into building lots at an additional cost of $125.000. These building lots were all of the same size but owing to dillerences in location were offered for sale at different prices as follows Group No. of Lots 20 Price per Lot $25,000 20.000 18.000 3 Operating expenses for the year allocated to this project total $75,200. Lots unsold at the year-end were as follows Group 1 10 lots Group 2 8 lots Group 3 3 lots At the end of the fiscal year Apple Corporation instructs you to arrive at the net income realized on this operation to date. Show all calculations! Instructions 1. Calculate the allocation of cost similar to Illustration 9-14 on page 453 of textbook 2. Calculate the sales. cost of goods sold and gross profit similar to Illustration 9-15 on page 453 of textbook 3. Prepare a condensed Income Statement to calculate the net income realized at the end of the fiscal year