Phil Collins Realty Corporation purchased a tract of unimproved land for $51,000. This land was improved and subdivided into building lots at an additional cost of $30,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows.
|
Group
|
|
No. of Lots
|
|
Price per Lot
|
| 1 |
|
8 |
|
|
$5,550 |
|
| 2 |
|
18 |
|
|
7,400 |
|
| 3 |
|
21 |
|
|
3,700 |
|
Operating expenses for the year allocated to this project total $17,600. Lots unsold at the year-end were as follows.
| Group 1 |
|
5 lots |
| Group 2 |
|
7 lots |
| Group 3 |
|
4 lots |
At the end of the fiscal year Phil Collins Realty Corporation instructs you to arrive at the net income realized on this operation to date. (Round ratios for computational purposes to 4 decimal places, e.g. 78.7234% and final answer to 0 decimal places, e.g. 5,845.)