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Doran Realty Company Purchased a Plot of Ground for $900,000

Question 90

Essay

Doran Realty Company purchased a plot of ground for $900,000 and spent $3,100,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell at $120,000, $90,000, and $60,000 each, respectively.

Instructions
Complete the table below to allocate the cost of the lots using a relative sales value method. Doran Realty Company purchased a plot of ground for $900,000 and spent $3,100,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell at $120,000, $90,000, and $60,000 each, respectively. Instructions Complete the table below to allocate the cost of the lots using a relative sales value method.

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