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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Transcribed Image Text: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
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