Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $115,000 each; 125 are street frontage lots and will sell for $85,000. The developer acquired the land for $2,000,000 and spent another $1,600,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using value basis.
Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $115,000 each; 125 are street frontage lots and will sell for $85,000. The developer acquired the land for $2,000,000 and spent another $1,600,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using value basis.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:TB MC Qu. 22-142 (Algo) Pleasant Hills Properties is developing...
Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course
lots and will sell for $115,000 each; 125 are street frontage lots and will sell for $85,000. The developer acquired the
land for $2,000,000 and spent another $1,600,000 on street and utilities improvement. Compute the amount of joint
cost to be allocated to the golf course lots using value basis.
Transcribed Image Text:Multiple Choice
$2,166,120.
$1,925,120.
$1,569,280.
$1,764,000.
$1,728,000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education