Tradition Construction Company purchased land for $4.8 million. Subsequent to the purchase date Tradition
paid $800,000 for land preparation as they were creating lots to sell for a new office park.
When recording the sale of each lot what value should be used for the cost? Round to the nearest Cent
NOTE: the streets were constructed previously and now owned by the city.
Lot	Number	Sales Price
Class	of Lots	per Lot
A	100	32000
B	100	22000
C	200	20000
	400
A. What amount should be recorded for cost of each A lot?
B. What amount should be recorded for cost of each B lot?
C. What amount should be recorded for cost of each C lot?
D. At year end Tradition Company had sold 50 Lot Class A Lots,
60 Lot Class B Lots, and 120 Lot Class C Lots.
(1) Total Revenue for the year:
(2) Net Income for the Year: