C&X Hills Properties is developing a golf course subdivision that includes 250 home lots; 120 lots are golf course lots and will sell for $95,000 each; 155 are street frontage lots and will sell for $65,000. The developer acquired the land for $1,750,000 and spent another $1,650,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using a value basis.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 76IIP
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Please provide answer ASAP to this accounting problem

C&X Hills Properties is developing a golf course
subdivision that includes 250 home lots; 120 lots are golf
course lots and will sell for $95,000 each; 155 are street
frontage lots and will sell for $65,000. The developer
acquired the land for $1,750,000 and spent another
$1,650,000 on street and utilities improvement.
Compute the amount of joint cost to be allocated to the
golf course lots using a value basis.
Transcribed Image Text:C&X Hills Properties is developing a golf course subdivision that includes 250 home lots; 120 lots are golf course lots and will sell for $95,000 each; 155 are street frontage lots and will sell for $65,000. The developer acquired the land for $1,750,000 and spent another $1,650,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using a value basis.
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