QS 24-19C Joint cost allocation LO C3 A company purchases a 11,440-square-foot commercial building for $435,000 and spends an additional $56,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 2,340 square feet, will be rented for $1.50 per square foot. Unit B contains 9,100 square feet and will be rented for $0.90 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation? X Answer is complete but not entirely correct. Market Value Percent of Market Value Joint Cost Apportioned Cost % of Mkt Value Numerator Denominator Unit $ 2,340 $ 3,150 $ 11,340 X 40.00% X x $ 491,000 $ 196,400 Unit B 9,100 X 11,340 X 60.00% X x $ 491,000 8,190 294,600 Totals $ 11,440 100.00% 491,000

QS 24-19C Joint cost allocation LO C3 A company purchases a 11,440-square-foot commercial building for $435,000 and spends an additional $56,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 2,340 square feet, will be rented for $1.50 per square foot. Unit B contains 9,100 square feet and will be rented for $0.90 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation? X Answer is complete but not entirely correct. Market Value Percent of Market Value Joint Cost Apportioned Cost % of Mkt Value Numerator Denominator Unit $ 2,340 $ 3,150 $ 11,340 X 40.00% X x $ 491,000 $ 196,400 Unit B 9,100 X 11,340 X 60.00% X x $ 491,000 8,190 294,600 Totals $ 11,440 100.00% 491,000

Name: QS 24-19C Joint cost allocation LO C3A company purchases a 11,440-squ
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Description: QS 24-19C Joint cost allocation LO C3A company purchases a 11,440-square-foot commercial building for $435,000 and spends an additional $56,000 to divide the spaceinto two separate rental units and prepare it for rent. Unit A, which has the desirabl

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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