} inces Home Properties is developing a subdivision that includes 370 home lots. The 160 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 210 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $45,000 and for each Hilltop lot is $106,000. The developer acquired the land for $1,600,000 and spent another $3,100,000 on street and utilities improvements. Assign the joint land and improvement costs of $4,700,000 to the Canyon section and the Hilltop section using the value basis of allocation (Do not round your intermediate calculations.) Canyon section Hilltop section Totals Sales Value L Numerator Percent of Sales Value Denominator % of Sales Value 0 0 0 Cost to Allocate Allocated Cost Quantity of Lots 160 210
} inces Home Properties is developing a subdivision that includes 370 home lots. The 160 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 210 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $45,000 and for each Hilltop lot is $106,000. The developer acquired the land for $1,600,000 and spent another $3,100,000 on street and utilities improvements. Assign the joint land and improvement costs of $4,700,000 to the Canyon section and the Hilltop section using the value basis of allocation (Do not round your intermediate calculations.) Canyon section Hilltop section Totals Sales Value L Numerator Percent of Sales Value Denominator % of Sales Value 0 0 0 Cost to Allocate Allocated Cost Quantity of Lots 160 210
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 76IIP
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![1
inces
Home Properties is developing a subdivision that includes 370 home lots. The 160 lots in the Canyon section are below a ridge and do
not have views of the neighboring canyons and hills, the 210 lots in the Hilltop section offer unobstructed views. The expected selling
price for each Canyon lot is $45,000 and for each Hilltop lot is $106,000. The developer acquired the land for $1,600,000 and spent
another $3,100,000 on street and utilities improvements.
Assign the joint land and improvement costs of $4,700,000 to the Canyon section and the Hilltop section using the value basis of
allocation (Do not round your intermediate calculations.)
Canyon section
Hilltop section
Totals
Sales Value
U
Numerator
Percent of Sales Value
Denominator
% of Sales
Value
0
0
0
Cost to Allocate Allocated Cost
Quantity
of Lots
160
210](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff82f375f-6757-43eb-ae48-8011e659702c%2F56befc1e-3497-49a7-9026-6b00bf79c5fe%2Ffn61gaq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1
inces
Home Properties is developing a subdivision that includes 370 home lots. The 160 lots in the Canyon section are below a ridge and do
not have views of the neighboring canyons and hills, the 210 lots in the Hilltop section offer unobstructed views. The expected selling
price for each Canyon lot is $45,000 and for each Hilltop lot is $106,000. The developer acquired the land for $1,600,000 and spent
another $3,100,000 on street and utilities improvements.
Assign the joint land and improvement costs of $4,700,000 to the Canyon section and the Hilltop section using the value basis of
allocation (Do not round your intermediate calculations.)
Canyon section
Hilltop section
Totals
Sales Value
U
Numerator
Percent of Sales Value
Denominator
% of Sales
Value
0
0
0
Cost to Allocate Allocated Cost
Quantity
of Lots
160
210
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