Question

Flounder Realty Corporation purchased a tract of unimproved land for \$55,000. This land was improved and...

Flounder Realty Corporation purchased a tract of unimproved land for \$55,000. This land was improved and subdivided into building lots at an additional cost of \$27,000. 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 8 \$4,200 2 16 5,600 3 18 3,360

Operating expenses for the year allocated to this project total \$17,000. 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 Flounder 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.)

 Calculation of Net Income Sales 183,680.00 Cost of Tract Sold 61,500.00 Operating Expenses 17,000.00 Net Income 105,180.00
 Group No. of Lots Price Per Lot Gross Sales 1 8 4,200.00 33,600.00 2 16 5,600.00 89,600.00 3 18 3,360.00 60,480.00 183,680.00
 Cost of Tract 55,000.00 cost of Improvement 27,000.00 Total Cost of Tract land 82,000.00
 Group1 Group2 Group3 Total No. of unsold lots 5 7 2 14 No. of Lots Sold 8 16 18 42 13 23 20 56 Cost of Tract land 19,036 33,679 29,286 82,000 Cost of Unsold Tract land 7,321 10,250 2,929 20,500 Cost of sold Tract land 11,714 23,429 26,357 61,500

Dear Student,

Earn Coins

Coins can be redeemed for fabulous gifts.