Answer:
The relevant multiple choices are as follows:
$1,920,000.
$720,000.
$1,620,800.
$1,579,200.
$1,080,000.
The correct answer is the third option which is $1,620,800.
Explanation:
Total joint costs=cost of land acquisition+cost of street and utilities improvement
cost of land acquisition=$1,800,000
cost of street and utilities improvement=$1,400,000
total joint costs=$1,800,000+$1,400,000=$3,200,000
sales value of the golf course lots=100*$95,000=$9,500,000
sales value of street frontage lots=150*$65,000=$ 9,750,000
Total sales value =$9,500,000+$9,750,000=$ 19,250,000
joint costs to street frontage lots=$3,200,000*$9,750,000/$19,250,000.00
=$ 1,620,779.22
The closest option is the third option above.
