Answered: Pleasant Hills Properties is developing… | bartleby

CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 76IIP

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Pleasant Hills Properties is developing a golf
course subdivision that includes 250 home lots;
100 lots are golf course lots and will sell for
$95,000 each; 150 are street frontage lots and
will sell for $65,000. The developer acquired the
land for $1,800,000 and spent another
$1,400,000 on street and utilities improvement.
Compute the amount of joint cost to be
allocated to the golf course lots using a value
basis.

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