Windsor Corporation purchased a tract of unimproved land for $631,000. This land was improved and subdivided into building lots atan additional cost of $129,000. These building lots were all of the same size but owing to differences in location were offered for sale atdifferent prices as follows:GroupNo. of LotsPrice per Lot121$23,10021319,9003g19,000Operating expenses for the year allocated to this project total $78,500. Lots unsold at the year-end were as follows:Group 19 lotsGroup 23 lotsGroup 34 lotsAt the end of the fiscal year Windsor Corporation instructs you to arrive at the net income realized on this operation to date. (Do notround intermediate calculations. Round final answer to O decimal places, e.g. 5,845.)Net income$

To calculate the net income realized by Windsor Corporation from the sale of building lots, we need…

Answered: Windsor Corporation purchased a tract…

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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At the beginning of the current year, Diamond Company Problem 11-23 (AICPA Adapted) purchased a tract of land for P12,000,000. The entity incurred additional cost of Pa,000,000 during the remainder of the year in subdividing the land for aale Of the tract nccrenge, 70% was subdivided into residential lots and 30% was conveyed to the city for roads and a park Sale, price per lot Lot elass Number of lots 100 100 200 240,000 160,000 100,000 C. Using the relative sales value method, what amount of cot should be allocated to Class A lota? a 3,000,000 b. 3,750,000 e. 6,000,000 d. 7,200,000
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?
-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
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
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
Whispering Corporation purchased a tract of unimproved land for $576,000. This land was improved and subdivided into building lots at an additional cost of $124,000. 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 $26,200 2 W N 13 18,500 3 9 18,100 Operating expenses for the year allocated to this project total $66,000. Lots unsold at the year-end were as follows: Group 1 Group 2 Group 3 9 lots 3 lots 4 lots E At the end of the fiscal year Whispering 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 $ 60
Questions: 1. What amount should be allocated as total cost of Class B lots under the relative sales price method? a. 1,176,000 b. 1,220,000 c. 1,276,000 d. 1,700,000 2. If Elixir Company was able to sell all the lots except for 15 lots of Class C, how much is the cost of sales to be recognized for the year?
Sagar
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?
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.)
a. If Elixir Company was able to sell all the lots except for 15 lots of Class C, how much is the cost of sales to be recognized for the year? b. What amount should be allocated as total cost of Class B lots under the Relative Sales Price method?

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