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2. <Question 2 (of 4)> value: 1.00 points Exercise 22-12B Joint real estate costs assigned LO C3 Heart & Home Properties is developing a subdivision that includes 600 home lots. The 450 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 150 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $55,000 and for each Hilltop lot is $110,000. The developer acquired the land for $4,000,000 and spent another $3,500,000 on street and utilities improvements. Assign the joint land and improvement costs to the lots using the value basis of allocation and determine the average cost per lot. Canyon section Hilltop section Totals Allocation Base Percent of Market Value Cost to Allocate Allocated Cost Quantity of Lots Average Lot Cost Numerator Denominator % of Mkt Value Hints References eBook & Resources Hint #1

          2.
<Question 2 (of 4)>
value:
1.00 points
Exercise 22-12B Joint real estate costs assigned LO C3
Heart & Home Properties is developing a subdivision that includes 600 home lots. The 450 lots in the
Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 150 lots
in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $55,000
and for each Hilltop lot is $110,000. The developer acquired the land for $4,000,000 and spent another
$3,500,000 on street and utilities improvements.
Assign the joint land and improvement costs to the lots using the value basis of allocation and determine
the average cost per lot.
Canyon section
Hilltop section
Totals
Allocation Base
Percent of Market Value
Cost to Allocate Allocated Cost Quantity of Lots Average Lot Cost
Numerator
Denominator % of Mkt Value
Hints
References eBook & Resources
Hint #1

2.
<Question 2 (of 4)>
value:
1.00 points
Exercise 22-12B Joint real estate costs assigned LO C3
Heart Home Properties is developing a subdivision that includes 600 home lots. The 450 lots in the
Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 150 lots
in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is 55,000
and for each Hilltop lot is110,000. The developer acquired the land for 4,000,000 and spent another3,500,000 on street and utilities improvements.
Assign the joint land and improvement costs to the lots using the value basis of allocation and determine
the average cost per lot.
Canyon section
Hilltop section
Totals
Allocation Base
Percent of Market Value
Cost to Allocate Allocated Cost Quantity of Lots Average Lot Cost
Numerator
Denominator % of Mkt Value
Hints
References eBook Resources
Hint #1

Added by Remedios Y.

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