Nash Realty Corporation purchased a tract of unimproved land for $54,000. This l

Question

Nash Realty Corporation purchased a tract of unimproved land for $54,000. This land was improved and subdivided into building lots at an additional cost of $30,000. 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 $3,900 5,200 3,120 17 16 Operating expenses for the year allocated to this project total $16,000. Lots unsold at the year-end were as follows. Group 1 Group 2 Group 3 5 lots 7 lots 2 lots At the end of the fiscal year Nash 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 14791.411

Explanation / Answer

price per lot no. of lots unsold sold Sales Closing stock 3900 8 5 3 11700 19500 5200 17 7 10 52000 36400 3120 16 2 14 43680 6240 107380 62140 net profit =sales+closing stock-purchase-additional cost-operating cost 69520

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