Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $30,000.These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Operating expenses allocated to this project total $18,200.Group123No. ofLots91519Group # of lots91215319Instructions: Using the charts below calculate the net income realized on this operation to date.Relative Sales Value Chart - Cost per LotGroup Lots Sold123Priceper Lot$ 3,0004,0002,000AccountPricePer Lot$3,0004,0002,000SalesCost of Goods SoldGross ProfitOperating ExpensesNet IncomeRelative Sales Value Chart - Cost of Goods Sold AllocationSelling PricePer LotLots Unsoldat Year-End572$3,0004,000TotalRevenueRelative Sales Value Chart - Net Income CalculationAmountTotal SalesRelative SalesPriceCost per LotTotalCostCostAllocatedper GroupTotal Cost ofGoods SoldCostAllocatedper Lot

It is the income earned by an entity after incurring all the expenses. It is the net revenue left…

Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $30,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Operating expenses allocated to this project total $18,200. Group 1 2 3 No. of Lots 9 15 19 Price per Lot $3,000 4,000 2,000 Lots Unsold at Year-End 5 7 2

Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $30,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Operating expenses allocated to this project total $18,200. Group 1 2 3 No. of Lots 9 15 19 Price per Lot $3,000 4,000 2,000 Lots Unsold at Year-End 5 7 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

(Relative Sales Value Method) Phil Collins Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $34,460.00. These building lots were all the same size but owing to differences in location were offered for sale at different prices as follows: Group # of lots Price per lot 1 9 $3,000 2 15 $4,000 3 17 $2,400 Operating expenses for the year alloted to this project total $18,200. Lots unsold at the year-end were as follows: Group 1 5 lots Group 2 7 lots Group 3 2 lots Instructions- at the end of the fiscal year Phil Collins Realty Corporation instructs you to arrive at the net income realized on this operation to date.
Land, a building and equipment are acquired for a lump sum of $900,000. The market values of the land, building an equipment are $500,000, $600,000 and $200,000, respectively. What is the cost assigneed to the equipment? (Do not round to any intermediary calculations and round your final answer to the nearest dollar). A. $0 B. $900,000 C. $200,000 D. $138,462 thnaka sfor help appareicated
What is the cost of the land, based upon the following data? Land purchase price $184,449 Broker's commission 18,832 Payment for the demolition and removal of existing building 5,505 Cash received from the sale of materials salvaged from the demolished building 1,490 $fill in the blank 1
A company purchased new equipment for $40,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $2,300; sales tax paid, $2,400; and installation cost, $2,300. The total capitalized cost reported for the equipment was: Multiple Choice $44,700. $47,000. $40,000. $42,300.
Simons Company purchased land to build a new factory. The following expenditures were made in conjunction with the land purchase: • Purchase price of the land, $150,000 • Real estate commissions of 7% of the purchase price • Land survey, $5,000 • Back taxes, $5,000 What is the initial value of the land? a. $160,000 b. $160,500 c. $165,500 d. $170,500
What is the cost of the land, based upon the following data? Land purchase price $174,323 Broker's commission 15,683 Payment for the demolition and removal of existing building 3,872 Cash received from the sale of materials salvaged from the demolished building 2,068
Using the information from the three office building land sales. Assume that you are valuing a similar building of 30,000 square feet. What is the appropriate land value? Sales Price Building Size Land Size Sale 1 $550,000 27,500 SF 2.50 acres Sale 2 $625,000 31,250 SF 2.50 acres Sale 3 $650,000 32,500 SF 3.25 acres
Denver Co. acquired real estate for the construction of a building and other facilities. Operating equipment was also purchased and installed. Cost of land purchased as a building site Architect's fee for design of new building P170,000 23,000 28,000 Paid for the demolition of an old building on the building site purchased above Paid land tax on the real estate purchased as a building site 1,700 Paid Geodetic engineer 10,000 Paid excavation costs for the new building 15,000 Made the first payment to the building Contractor 250,000 Paid for equipment to be installed in the new building 148,000 Received from sale of salvaged materials from demolishing the old building Paid Civil engineer (6,800) 20,000 Made final payment to the building Contractor 350,000 Paid interest on building loan during Construction 22,000 Paid freight on equipment purchased 1,900 Paid installation costs of equipment 4,200 Paid for repair of equipment damaged during installation 2,700 Property ledger account…
Noon Co. acquired land and building for 10,000,000. Noon Co. also made the following expedintures. Land Titling cost 100,000 Special assesment 40,000 Payments to tenants to vacate premises 80,000 Options taken out on several pieces of property 300,000 Building remodeling prior to occupancy 800,000 Repairs and maintenance after occupancy 20,000 Landscaping on the premises (karesansui or Japanese garden, ornamental plants and backyard pond) 24000 Addition of driveway and parking lot on the premises 80,000 The fair value of the building is thrice as musch as the land. Of the options taken, 120,000 relate to the land and building acquired; the balance relates to properties not acquired. Requirement: Compute for the costs of land, land improvement and building.
• UPS purchased a six-acre tract of land in Columbia, SC and an existing building for $500,000. The company plans to remove the old building and construct a distribution hub and a small office building on the site. In addition to the purchase price, the company made the following expenditures at closing of the purchase: Title insurance $ 3,000 Commissions 16,000 Property taxes *6,000 • * The $6,000 in property taxes included $2,000 of delinquent taxes paid by UPS on behalf of the seller and $4,000 attributable to the portion of the current fiscal year after the purchase date. Shortly after closing, the company paid a contractor $25,000 to tear down the old building and remove it from the site. An additional $5,000 was paid to regrade the land. What amount should be capitalized?
The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $119,000 at the beginning of the year was expected to deliver 202,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: Multiple Choice C $17,144 Tons Delivered: How much truck depreciation should be allocated to Site A? Note: Do not round Intermediate calculations. Round your answer to the nearest dollar. $1,296 $1,190 A 2,200 None of the answers are correct. B 3,700 C 4, 200 D 1,700