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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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Silver Ridge Development is developing a residential community
with 300 home lots; 120 lots are waterfront lots and will sell for
$120,000 each; 180 are regular lots and will sell for $80,000 each. The
developer acquired the land for $2,400,000 and spent another
$2,000,000 on street and utilities improvements. Compute the amount
of joint cost to be allocated to the waterfront lots using a value basis.

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