Mountain Home Properties is developing a subdivision that includes 350 home lots. The 170 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 180 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $48,000 and for each Hilltop lot is $107,000. The developer acquired the land for $1,900,000 and spent another $2,200,000 on street and utilities improvements.
| Required: Assign the joint land and improvement costs to the lots using the market value as the basis of allocation AND determine the average cost per lot. |
| |
No comments:
Post a Comment