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Several tenants share a large office building in the suburbs. Since there aren't many restaurants nearby, the tenants came together to provide a cafeteria in-house
Several tenants share a large office building in the suburbs. Since there aren't many restaurants nearby, the tenants came together to provide a cafeteria in-house for everyone's benefit. In addition to sharing the cafeteria, the tenants also share building maintenance services. Last year, the four tenants used the direct method to allocate these costs, which resulted in each of the four tenants recognizing ( 25 % ) of the cafeteria costs. The first two tenants each recognized ( 20 % ) of the maintenance cost, and the last two tenants each recognized ( 30 % ) of the maintenance cost. Maintenance cost is allocated based on square feet of space used, and cafeteria cost is allocated based on number of employees. If the first tenant uses 3,900 square feet of space and the last tenant has 30 employees, specify the amount of space used and the number of employees for each of the four tenants.
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