Suppose you have 3 sales you can use for comparable sales. Sale 1 and Sale 2 are puritan in relation to land class. Use the puritan sales to determine the price per acre by land class for the third sale using the land class ratio analysis and land adjustment process. Sale 1 has 475 acres of Class 1V land and sold for $300,000. Sale 2 has 600 acres of Class I land and sold for $550,000. Sale 3 has 350 acres of Class I land and 100 acres of Class IV land and sold for $400,000.

Suppose you have 3 sales you can use for comparable sales. Sale 1 and Sale 2 are puritan in relation to land class. Use the puritan sales to determine the price per acre by land class for the third sale using the land class ratio analysis and land adjustment process. Sale 1 has 475 acres of Class 1V land and sold for $300,000. Sale 2 has 600 acres of Class I land and sold for $550,000. Sale 3 has 350 acres of Class I land and 100 acres of Class IV land and sold for $400,000.

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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Question

Suppose you have 3 sales you can use for comparable sales. Sale 1 and Sale 2 are puritan in relation to land class. Use
the puritan sales to determine the price per acre by land class for the third sale using the land class ratio analysis and
land adjustment process. Sale 1 has 475 acres of Class 1V land and sold for $300,000. Sale 2 has 600 acres of Class I
land and sold for $550,000. Sale 3 has 350 acres of Class I land and 100 acres of Class IV land and sold for $400,000.

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