Question
Vaughn Realty Corporation purchased a tract of unimproved land for $104,500. This land was improved and...
Vaughn Realty Corporation purchased a tract of unimproved land
for $104,500. This land was improved and subdivided into building
lots at an additional cost of $65,474. 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 | $5,700 | ||||
| 2 | 15 | 7,600 | ||||
| 3 | 17 | 4,560 | ||||
Operating expenses for the year allocated to this project total
$34,580. 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 Vaughn 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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