Exercise 9-9 Concord Realty Corporation purchased a tract of unimproved land for
ID: 2566401 • Letter: E
Question
Exercise 9-9 Concord Realty Corporation purchased a tract of unimproved land for $50,000. 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 Price per Lot $5,700 7,600 4,560 Group No. of Lots 8 15 17 Operating expenses for the year allocated to this project total $17,000. 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 Concord 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, eg. 78.7234% and final answer to 0 decimal places, eg. 5,845.) Net income Click if you would like to Show Work for this question:Explanation / Answer
(a)
(b)
(c)
(d) = (b)*(c)
(e) = (Total Sales Price/189280)*100
(f) = 80000*(e)
(g) = (f)/(d)
Group
Number of Lots
Price Per Lot
Total Sales
Percentage
Total Costs Allocated
Cost per Lot
1
8
5700
45600
19.2308%
15384.62
1923.08
2
15
7600
114000
48.0769%
38461.54
2564.10
3
17
4560
77520
32.6923%
26153.85
1538.46
237120
(a)
(b)
(c)
(d)
(e) = (c) - (d)
(f) = (b)*(e)
Group
Number of Lots Sold
Price Per Lot
Cost per Lot
Gross Profit Per Lot
Total Gross Profit
1
5
5700
1923.077
3776.923
18884.61538
2
7
7600
2564.103
5035.897
35251.28205
3
2
4560
1538.462
3021.538
6043.076923
60178.97436
Less: Expenses
17000
Net Income
43179
(a)
(b)
(c)
(d) = (b)*(c)
(e) = (Total Sales Price/189280)*100
(f) = 80000*(e)
(g) = (f)/(d)
Group
Number of Lots
Price Per Lot
Total Sales
Percentage
Total Costs Allocated
Cost per Lot
1
8
5700
45600
19.2308%
15384.62
1923.08
2
15
7600
114000
48.0769%
38461.54
2564.10
3
17
4560
77520
32.6923%
26153.85
1538.46
237120
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