Belgrade Lakes Properties Is Developing a Golf Course Subdivision That

question 64

Multiple Choice

Belgrade Lakes Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $95,000 each; 125 are street frontage lots and will sell for $65,000. The developer acquired the land for $1,800,000 and spent another $1,400,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the street frontage lots using value basis.

• A) $1,724,800.
• B) $1,777,920.
• C) $2,018,920.
• D) $1,422,080.
• E) $1,475,200.