Question 1 Splish Realty Corporation purchased a tract of unimproved land for $5
ID: 2562293 • Letter: Q
Question
Question 1 Splish Realty Corporation purchased a tract of unimproved land for $51,000. This land was improved and subdivided into building lots at an additional cost of $29,000 These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows No. of Lots Price per Lot $4,200 5,600 3,360 Group 8 17 18 2 Operating expenses for the year allocated to this project total $15,000. 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 Splish 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, eg. 78.723496 and final answer to 0 decimal places, eg. 5,845.) Net income $ Question Attempts: 2 of 5 used SAVE FOR LATER SUBMIT ANSWERExplanation / Answer
(a)
(b)
(c)
(d) = (b)*(c)
(e) = (Total Sales Price/189280)*100
(f) = 80000*(e)
(g) = (f)/(d)
Group
Number of Lots
Price Per Lot
Total Sales
Percentage
Total Costs Allocated
Cost per Lot
1
8
4200
33600
17.7515%
14201.18
1775.15
2
17
5600
95200
50.2959%
40236.69
2366.86
3
18
3360
60480
31.9527%
25562.13
1420.12
189280
(a)
(b)
(c)
(d)
(e) = (c) - (d)
(f) = (b)*(e)
Group
Number of Lots Sold
Price Per Lot
Cost per Lot
Gross Profit Per Lot
Total Gross Profit
1
5
4200
1775.148
2424.852
12124.26036
2
7
5600
2366.864
3233.136
22631.95266
3
2
3360
1420.118
1939.882
3879.763314
38635.97633
Less: Expenses
15000
Net Income
23636
(a)
(b)
(c)
(d) = (b)*(c)
(e) = (Total Sales Price/189280)*100
(f) = 80000*(e)
(g) = (f)/(d)
Group
Number of Lots
Price Per Lot
Total Sales
Percentage
Total Costs Allocated
Cost per Lot
1
8
4200
33600
17.7515%
14201.18
1775.15
2
17
5600
95200
50.2959%
40236.69
2366.86
3
18
3360
60480
31.9527%
25562.13
1420.12
189280
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.