In 2004, Link Realty Company purchased a tract of land for $9,000,000. Link developed the land into an industrial park at an additional cost of $750,000. the park was subdivided in 10 lots. Lots -- Selling price per lot A, B, C, D -- $1,000,000 E, F, G -- $1,250,000 H, I, J -- $1,750,000 During 2005, Link sold Lots A, D, G, and I. How much gross margin should Link Realty Company realize from the sale of lots during 2005? a. $750,000 b. $1,000,000 c. $1,250,000 d. $1,500,000

In 2004, Link Realty Company purchased a tract of land for $9,000,000. Link developed the land into an industrial park at an additional cost of $750,000. the park was subdivided in 10 lots. Lots -- Selling price per lot A, B, C, D -- $1,000,000 E, F, G -- $1,250,000 H, I, J -- $1,750,000 During 2005, Link sold Lots A, D, G, and I. How much gross margin should Link Realty Company realize from the sale of lots during 2005? a. $750,000 b. $1,000,000 c. $1,250,000 d. $1,500,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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