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https.edugen wileyplus.com t/mainfr uni Kieso, Intermediate Accounting, 16e ACCT

ID: 2513036 • Letter: H

Question

https.edugen wileyplus.com t/mainfr uni Kieso, Intermediate Accounting, 16e ACCT 3121-002 Gradebeok ORION Dewnleadable eTextbeolk Exercise 99 Martinez Realty Corporation purchesed a tract of unimproved land for $53,000. This lend was ots were all of the same size but owing to ifferences in ecation were offered for sale at difterent prices as 3,600 3,360 Operating expenses for the year alocabed to this preject otal $18,000 Lots unsold at the year end ware as follows Group 1 Group 2 Group 3 net income 1.33 5 9

Explanation / Answer

Net income is $ 41,351

Grp

No of Lot

Sales price

Total sales price

Relative sales price as %

Cost total

Cost allocated

Cost per lot

1

8

4200

33600

19%

83000

15770

1971

2

15

5600

84000

47%

83000

39010

2601

3

18

3360

60480

34%

83000

28220

1568

178080

Grp

No of Lot

Sales price

Total sales price

Cost per unit

Extended cost

Gross profit

1

3

4200

12600

1971

5913

6687

2

8

5600

44800

2601

20808

23992

3

16

3360

53760

1568

25088

28672

111160

51809

59351

Calculation of Net Income

Sales revenue (from schedule)           $1,11,160

Cost of goods sold (from schedule) $51,809

Gross profit $59,351

Operating expenses                           $18.000

Net income                                       $41,351

Grp

No of Lot

Sales price

Total sales price

Relative sales price as %

Cost total

Cost allocated

Cost per lot

1

8

4200

33600

19%

83000

15770

1971

2

15

5600

84000

47%

83000

39010

2601

3

18

3360

60480

34%

83000

28220

1568

178080