} inces Home Properties is developing a subdivision that includes 370 home lots. The 160 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 210 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $45,000 and for each Hilltop lot is $106,000. The developer acquired the land for $1,600,000 and spent another $3,100,000 on street and utilities improvements. Assign the joint land and improvement costs of $4,700,000 to the Canyon section and the Hilltop section using the value basis of allocation (Do not round your intermediate calculations.) Canyon section Hilltop section Totals Sales Value L Numerator Percent of Sales Value Denominator % of Sales Value 0 0 0 Cost to Allocate Allocated Cost Quantity of Lots 160 210

} inces Home Properties is developing a subdivision that includes 370 home lots. The 160 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 210 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $45,000 and for each Hilltop lot is $106,000. The developer acquired the land for $1,600,000 and spent another $3,100,000 on street and utilities improvements. Assign the joint land and improvement costs of $4,700,000 to the Canyon section and the Hilltop section using the value basis of allocation (Do not round your intermediate calculations.) Canyon section Hilltop section Totals Sales Value L Numerator Percent of Sales Value Denominator % of Sales Value 0 0 0 Cost to Allocate Allocated Cost Quantity of Lots 160 210

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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