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

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

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 42P

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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?
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?
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 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.)
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.)
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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
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?