Concord Realty Corporation purchased a tract of unimproved land
for $49,500. This land was improved and subdivided into building
lots at an additional cost of $31,014. 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 | $2,700 | ||||
2 | 15 | 3,600 | ||||
3 | 17 | 2,160 |
Operating expenses for the year allocated to this project total
$16,380. 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 Concord 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 | $ |
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