Tradition Construction Company purchased land for $4.8 million. Subsequent to the purchase date Tradition paid $800,000 for
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Question:
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: |
Posted Date: