Walton Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow. Condo 1 Condo 2 Condo 3 Total Direct Labor $ 17,300 18,600 26,000 $ 61,900 Other Direct Operating Costs $ 44,800 51,000 64,500 $ 160,300 Indirect operating expenses, which amounted to $40,075, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each. Required a. Assuming that the amount of rent revenue from Condo 2 is $110,000, what amount of income did it earn? Note: Do not round intermediate calculations. Income earned

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Walton Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as
vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of
interest and depreciation. The direct operating costs for each condo follow.
Condo 1
Condo 2
Condo 3
Total
Direct
Labor
$ 17,300
18,600
26,000
$ 61,900
Other Direct
Operating Costs
$ 44,800
51,000
64,500
$ 160,300
Indirect operating expenses, which amounted to $40,075, are allocated to the condos in proportion to the amount of other direct
operating costs incurred for each.
Required
a. Assuming that the amount of rent revenue from Condo 2 is $110,000, what amount of income did it earn?
Note: Do not round intermediate calculations.
Income earned
Transcribed Image Text:Walton Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow. Condo 1 Condo 2 Condo 3 Total Direct Labor $ 17,300 18,600 26,000 $ 61,900 Other Direct Operating Costs $ 44,800 51,000 64,500 $ 160,300 Indirect operating expenses, which amounted to $40,075, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each. Required a. Assuming that the amount of rent revenue from Condo 2 is $110,000, what amount of income did it earn? Note: Do not round intermediate calculations. Income earned
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