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CONCEPTS IN FED.TAX.,2020-W/ACCESS

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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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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