Tamarisk Realty Corporation purchased a tract of unimproved land for $110,000. This land was improved and subdivided into building lots at an additional cost of $68,920. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Group 1 2 3 No. of Lots 9 15 17 Price per Lot $6,000 8,000 4,800 Operating expenses for the year allocated to this project total $36,400. Lots unsold at the year-end were as follows. Group 1 Group 2 Group 3 5 lots 7 lots 2 lots At the end of the fiscal year Tamarisk Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Round ratios for computational purposes to 4 decimal places, e.g. 78.7234% and final answer to 0 decimal places, e.g. 5,845.) Net income
Tamarisk Realty Corporation purchased a tract of unimproved land for $110,000. This land was improved and subdivided into building lots at an additional cost of $68,920. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Group 1 2 3 No. of Lots 9 15 17 Price per Lot $6,000 8,000 4,800 Operating expenses for the year allocated to this project total $36,400. Lots unsold at the year-end were as follows. Group 1 Group 2 Group 3 5 lots 7 lots 2 lots At the end of the fiscal year Tamarisk Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Round ratios for computational purposes to 4 decimal places, e.g. 78.7234% and final answer to 0 decimal places, e.g. 5,845.) Net income
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 42P
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Transcribed Image Text:Tamarisk Realty Corporation purchased a tract of unimproved land for $110,000. This land was improved and subdivided into building lots at an additional cost of $68,920.
These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows.
Group
1
2
3
No. of Lots
9
15
17
Price per Lot
$6,000
8,000
4,800
Operating expenses for the year allocated to this project total $36,400. Lots unsold at the year-end were as follows.
Group 1
Group 2
Group 3
5 lots
7 lots
2 lots
At the end of the fiscal year Tamarisk Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Round ratios for computational
purposes to 4 decimal places, e.g. 78.7234% and final answer to 0 decimal places, e.g. 5,845.)
Net income
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