Larsen Realty Corporation purchased a tract of unimproved land


Question Description:

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Larsen Realty Corporation purchased a tract of unimproved land for $54,000. This land was improved and subdivided into building lots at an additional cost of $29,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follow. Group No. of Lots Price per Lot 1 9 $4,050 2 18 5,400 3 20 2,700 Operating expenses for the year allocated to this project total $17,500. Lots unsold at the year-end were as follows. Group 1 4 lots Group 2 7 lots Group 3 3 lots At the end of the fiscal year Larsen Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Round ratios for computational purposes to 1 decimal place, e.g 78.7% and final answers to 0 decimal places, e.g. $5,845.) Net income $

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