-Qdinson Company purchased a tract of land for P 12,000,000. The entity incurredadditional cost of P 3,000,000 during the remainder of the year in preparing the landfor sale. The tract of land was subdivided into residential lots.Number of LotsSales Price per LotP 240,000160,000100,000Lot ClassA100B100200Using the relative sales price method, what amount should be allocated to Class ALots?A. P3,000,000В. Р 3,750,000C. P6,000,000D. P7,200,000

Lot A = 2,40,000 2,40,000/5,00,000 x 100 = 0.48 Lot B = 1,60,000 1,60,000/5,00,000 x 100 =…

ompany purchased . additional cost of P 3,000,000 during the remainder of the year in preparing the lan for sale. The tract of land was subdivided into residential lots. Lot Class A Number of Lots 100 Sales Price per Lot P 240,000 160,000 100,000 B 100 200 Using the relative sales price method, what amount should be allocated to Class Lots? А. Р3,000,000 В. Р 3,750,000 С. Р6,000,000 D. P 7,200,000

ompany purchased . additional cost of P 3,000,000 during the remainder of the year in preparing the lan for sale. The tract of land was subdivided into residential lots. Lot Class A Number of Lots 100 Sales Price per Lot P 240,000 160,000 100,000 B 100 200 Using the relative sales price method, what amount should be allocated to Class Lots? А. Р3,000,000 В. Р 3,750,000 С. Р6,000,000 D. P 7,200,000

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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