Waterway Realty Corporation purchased a tract of unimproved land for $126,500. This land was improved and...

Expert Solution

Oriole Realty Corporation purchased a tract of unimproved land for $132,000. This land was improved and...

Larkspur Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and...

Shamrock Realty Corporation purchased a tract of unimproved land for $54,000. This land was improved and...

In fiscal 2020, Bridgeport Realty Corporation purchased unimproved land for $55,700. The land was improved and...

On January 2, 2018, Parrish Corporation purchased a tract of land (site no. 505) with a...

1. Victoria Corporation entered into the following transactions: Purchased a tract of land with existing building...

On January 1, 2018, the Blackstone Corporation purchased a tract of land (site number 11) with...

Splish Mining Company has purchased a tract of mineral land for $1,332,000. It is estimated that...

Skysong Mining Company has purchased a tract of mineral land for $1,008,000. It is estimated that...

Bogart Development purchased a tract of land on August 31 of the current year, paying $225,000....

Question

Waterway Realty Corporation purchased a tract of unimproved land for $126,500. This land was improved and subdivided into building lots at an additional cost of $79,258. 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 for the year allocated to this project total $41,860. Lots unsold at the year-end were as follows.

Group 1		5 lots
Group 2		7 lots
Group 3		2 lots

At the end of the fiscal year Waterway 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, e.g. 78.7234% and final answer to 0 decimal places, e.g. 5,845.)

Net income

$

Group	No of Lots	Sales Price	Total Sales Price	Cost Allocated	Cost per Lot
1	9	$ 6,900	$ 62,100	$ 43,470	$ 4,830
2	15	$ 9,200	$ 138,000	$ 96,600	$ 6,440
3	17	$ 5,520	$ 93,840	$ 65,688	$ 3,864
Totals			$ 293,940	$ 205,758

Group	No of Lot Sold	Cost per lot	Cost of Lots Sold	Sales
1	4	$ 4,830	$ 19,320	$ 27,600
2	8	$ 6,440	$ 51,520	$ 73,600
3	15	$ 3,864	$ 57,960	$ 82,800
Totals			$ 128,800	$ 184,000

Net Income = $184000-128800-41860 = $13,340

ekkarill92 answered 1 year ago

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On January 2, 2018, Parrish Corporation purchased a tract of land (site no. 505) with a building for $2,000,000. Parrish also paid the following fees to complete the purchase: Real estate broker’s commission $75,000 Legal fees 25,000 Title insurance 40,000 Back taxes (paid to clear a lien) 20,000 The closing statement indicated the fair value of the land was $1,700,000 and the building’s fair value was $300,000. Immediately after the purchase was finalized, the building was razed for...

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No. of Lots

Price per Lot