Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $30,000.These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Operating expenses allocated to this project total $18,200.Group123No. ofLots91519Group # of lots91215319Instructions: Using the charts below calculate the net income realized on this operation to date.Relative Sales Value Chart - Cost per LotGroup Lots Sold123Priceper Lot$ 3,0004,0002,000AccountPricePer Lot$3,0004,0002,000SalesCost of Goods SoldGross ProfitOperating ExpensesNet IncomeRelative Sales Value Chart - Cost of Goods Sold AllocationSelling PricePer LotLots Unsoldat Year-End572$3,0004,000TotalRevenueRelative Sales Value Chart - Net Income CalculationAmountTotal SalesRelative SalesPriceCost per LotTotalCostCostAllocatedper GroupTotal Cost ofGoods SoldCostAllocatedper Lot

It is the income earned by an entity after incurring all the expenses. It is the net revenue left…

Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $30,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Operating expenses allocated to this project total $18,200. Group 1 2 3 No. of Lots 9 15 19 Price per Lot $3,000 4,000 2,000 Lots Unsold at Year-End 5 7 2

Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $30,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Operating expenses allocated to this project total $18,200. Group 1 2 3 No. of Lots 9 15 19 Price per Lot $3,000 4,000 2,000 Lots Unsold at Year-End 5 7 2

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

See similar textbooks

Similar questions

Concord Corporation purchased a tract of unimproved land for $647,000. This land was improved and subdivided into building an additional cost of $122,000. 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 No. of Lots Price per Lot 1 21 $23,600 2 13 19,200 3 9 19,300 Operating expenses for the year allocated to this project total $66,300. Lots unsold at the year-end were as follows: Group 1 9 lots Group 2 3 lots Group 3 4 lots At the end of the fiscal year Concord Corporation instructs you to arrive at the net income realized on this operation to date. (Do not round intermediate calculations. Round final answer to O decimal places, e.g. 5,845.) Net income $ D 505400
Splish Realty Corporation purchased a tract of unimproved land for $154,000. This land was improved and subdivided into building lots at an additional cost of $96,488. 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 Group 1 Group 2 Group 3 17 Operating expenses for the year allocated to this project total $50,960. Lots unsold at the year-end were as follows. Net income 5 lots 7 lots Price per Lot $8,400 11.200 6,720 2 lots At the end of the fiscal year Splish Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Do not round intermediate calculations. Round final answer to 0 decimal places, e.g. 5,845.)
Whispering Realty Corporation purchased a tract of unimproved land for $82,500. This land was improved and subdivided into building lots at an additional cost of $51,690. 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 Group 1 Group 2 Group 3 No. of Lots 9 Net income 15 17 Operating expenses for the year allocated to this project total $27,300. Lots unsold at the year-end were as follows. 5 lots 7 lots Price per Lot $4,500 6,000 2 lots 3,600 At the end of the fiscal year Whispering Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Do not round intermediate calculations. Round final answer to 0 decimal places, e.g. 5,845.)
-Qdinson Company purchased a tract of land for P 12,000,000. The entity incurred additional cost of P 3,000,000 during the remainder of the year in preparing the land for sale. The tract of land was subdivided into residential lots. Number of Lots Sales Price per Lot P 240,000 160,000 100,000 Lot Class A 100 B 100 200 Using the relative sales price method, what amount should be allocated to Class A Lots? A. P3,000,000 В. Р 3,750,000 C. P6,000,000 D. P7,200,000
Solid Company purchased a plot of ground for P18,000,000. The entity also paid an independent appraiser for the land the amount of P500,000. The land was developed as residential lots at a total cost of P41,500,000. The lots were classified as follows: Number of lots Sales price per lot Highland Midland Lowland 20 40 1,000,000 750,000 500,000 100 Required: Compute the total cost of each lot classification.
In fiscal 2023, Swifty Realty Corporation purchased unimproved land for $57,000. The land was improved and subdivided into building lots at an additional cost of $35,100. These building lots were all the same size but, because of differences in location, were offered for sale at different prices, as follows: Group 1 2 3 Number of Lots Group 1 Group 2 Group 3 10 16 24 Operating expenses that were allocated to this project totalled $19,300 for the year. At year end, there were also unsold lots remaining, as follows: 5 lots 7 lots 4 lots Price per Lot Year-end inventory $3,410 4,400 2,350 Determine the year-end inventory and net income of Swifty Realty. Ignore income taxes. (Do not round intermediate calculations. Round final answers to O decimal places, eg. 5,275.) Net income/(Loss) $ 29472 49500
Elirie Company, bought a 10-hectare land for P5,850,000 to be improved, subdivided into lots and eventually sold. Taxes and documentation expenses on the transfer of the property amounted to P80,000. Lot class Number of lots Selling price per lot Total clearing cost A 10 100,000 None 100,000 300,000 В 20 80,000 C 40 70,000 50 60,000 800,000 14. What amount should be allocated as total cost of Class B lots under the relative sales price method?
At the beginning of the current year, Diamond Company purchased a tract of land for P 12,000,000.The entity incurred additional cost of P3,000,000 during the remainder of the year in subdividing the land for sale.Of the tract acreage, 70% was subdivided into residential lots and 30% was conveyed to the city for roads and a park. Lot class Number of lots Sale price per lot A 100 240,000B 100 160,000C 200 100,000 Using the relative sales value method, what amount of cost should be allocated to Class A lots?
residential lots at a cost of P43,500,000. Problem 11-14 (AICPA Adapted) Landmark Company purchased a tract of unimproved land for P26,850,000. The land was improved and subdivided into in location were offered for sale at different prices as follows: Problem 11-14 (AICPA Adapted) A These lots were all of the same size but owing to differences a location were offered for sale at different prices as follows: Group 000 No. of lots Sales price per lot 20 3,000,000 2,500,000 2,000,000 10 10 Lots unsold at the end of the year are: Group 1 Group 2 Gróup 3 5 lots 4 lots 3 lots Required: Compute the cost of unsold lots at the end of the year. 123
The Open Grill incurred the following costs in acquiring a new piece of land: Purchase price $80,000 Commissions 4,800 Liability insurance for the first year 1,200 20,000 Cost of removing existing building Sale of salvaged materials (4,000) Total costs $102,000 What is the total capitalized cost of the land? Multiple Choice O O $102,000. $80,000. $100,800. $106,000.
Carlos Company purchased a building and land for $400,000 in total. Individually, the landappraised for $84,000 and the building appraised for $336,000. How much of the purchaseprice should be allocated to the cost of the land?a. $75,000b. $80,000c. $84,000d. $400,000
At the beginning of the current year, Dianne company purchased a tract of land for P6,000,000. The entity incurred additional cost of 1,500,000 durinhg the remainder of the year in preparing the land for sale. The tract was subdivided into residential lots as follows: LOT CLASS Number of lots Sales Price per lot A 100 P240,000 B 100 P160,000 C 200 P100,000 If 150 class C lots were sold, How much is the cost of unsold class C lots?