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...

See similar textbooks

Similar questions

None
At the beginning of the current year, Dianne company purchased a tract of land for P6,000,000. The entity incurred additional cost of 1,500,000 durinhg the remainder of the year in preparing the land for sale. The tract was subdivided into residential lots as follows: LOT CLASS Number of lots Sales Price per lot A 100 P240,000 B 100 P160,000 C 200 P100,000 If 150 class C lots were sold, How much is the cost of unsold class C lots?
Whispering Corporation purchased a tract of unimproved land for $576,000. This land was improved and subdivided into building lots at an additional cost of $124,000. 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 1 21 $26,200 2 W N 13 18,500 3 9 18,100 Operating expenses for the year allocated to this project total $66,000. Lots unsold at the year-end were as follows: Group 1 Group 2 Group 3 9 lots 3 lots 4 lots E At the end of the fiscal year Whispering Corporation instructs you to arrive at the net income realized on this operation to date. (Do not round intermediate calculations. Round final answer to O decimal places, e.g. 5,845.) Net income $ 60
Doran Realty Company purchased a plot of ground for P800, 000 and spent P2, 100, 000 in developing it for building lots. The lots were classified int Midland, and Lowland grades, to sell at P100, 000, P75, 000, and P50, 000 each, respectively. Complete the table below to allocate the cost of the lots using a relative sales value method. Grade No. of Lots Selling Price Total Revenue % of Total Sales Apportioned Cost Total Per Lot Highland 20 Midland 40 Lowland 100 Total 160
Windsor Corporation purchased a tract of unimproved land for $631,000. This land was improved and subdivided into building lots at an additional cost of $129,000. 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 1 21 $23,100 2 13 19,900 3 g 19,000 Operating expenses for the year allocated to this project total $78,500. Lots unsold at the year-end were as follows: Group 1 9 lots Group 2 3 lots Group 3 4 lots At the end of the fiscal year Windsor Corporation instructs you to arrive at the net income realized on this operation to date. (Do not round intermediate calculations. Round final answer to O decimal places, e.g. 5,845.) Net income $
In 2014, Nana Company purchased property with natural resources for P12,400,000. The property was relatively close to a large city and had an expected residual value of P3,000,000. However, P1,200,000 will have to be spent to restore the land for use. The following information relates to the use of the property: - In 2014, Nana spent P800,000 in develpment cost and P600,000 in building on the property. Nana does not anticipate that the building will have any utility after the natural resources are depleted. - In 2015 and 2017, P600,000 and P1,600,000 respectively were spent for additional development on the mine - The tonnage mined and estimated remaining tons for years 2014-2018 are as follow: Year Ton Extracted Estimated Tons Remaining 2014 - 5,000,000 2015 1,500,000 3,500,000 2016 1,800,000 2,000,000 2017 1,700,000 900,000 2018 900,000 0 Based on the preceding information, calculate the depletion and depreciation for 2015? Depletion Depreciation a. 3,600,000 180,000 b.…
Woodland Developers purchases land for $1.5 million that it will subdivide into 400 lots. These lots are of different sizes and shapes but can be roughly sorted into three groups graded A, B, and C. As Woodland sells the lots, it apportions the purchase cost of $1.5 million among the lots sold and the lots remaining on hand. Instructions: What is the cost allocated to grade C lots, assuming that grade A estimated sales value $1,000,000, grade B estimated sales value $900,000, and grade C estimated sales value $600,000? (Please write your answer without commas or sign of the dollar. For example, if your answer is $10,000, write it 10000)
Sagar
Concord Corporation purchased a tract of unimproved land for $647,000. This land was improved and subdivided into building an additional cost of $122,000. 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 1 21 $23,600 2 13 19,200 3 9 19,300 Operating expenses for the year allocated to this project total $66,300. Lots unsold at the year-end were as follows: Group 1 9 lots Group 2 3 lots Group 3 4 lots At the end of the fiscal year Concord Corporation instructs you to arrive at the net income realized on this operation to date. (Do not round intermediate calculations. Round final answer to O decimal places, e.g. 5,845.) Net income $ D 505400
a. If Elixir Company was able to sell all the lots except for 15 lots of Class C, how much is the cost of sales to be recognized for the year? b. What amount should be allocated as total cost of Class B lots under the Relative Sales Price method?
Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots and eventually sold. Taxes and documentation expenses on the transfer of the property amounted to P80,000. Lot class Number of lots Selling price per lot Total clearing cost A 10 100,000 None 100,000 300,000 В 20 80,000 C 40 70,000 50 60,000 800,000 14. What amount should be allocated as total cost of Class B lots under the relative sales price method?
At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.The entity incurred additional cost of P3,000,000 during the remainder of the year in subdividing the land for sale.Of the tract acreage, 70% was subdivided into residential lots and 30% was conveyed to the city for roads and a park. Lot class Number of lots Sale price per lot A 100 240,000B 100 160,000C 200 100,000 Using the relative sales value method, what amount of cost should be allocated to Class A lots?