Question
Wildhorse Realty Corporation purchased a tract of unimproved land for $121,000. This land was improved and subdivided into building lots at an additional cost of
Wildhorse Realty Corporation purchased a tract of unimproved land for $121,000. This land was improved and subdivided into building lots at an additional cost of $75,812. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows.
Group | No. of Lots | Price per Lot | ||||
1 | 9 | $6,600 | ||||
2 | 15 | 8,800 | ||||
3 | 17 | 5,280 |
Operating expenses for the year allocated to this project total $40,040. Lots unsold at the year-end were as follows.
Group 1 | 5 lots | |
Group 2 | 7 lots | |
Group 3 | 2 lots |
At the end of the fiscal year Wildhorse Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Round ratios for computational purposes to 4 decimal places, e.g. 78.7234% and final answer to 0 decimal places, e.g. 5,845.)
Net income | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started