1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rosijanka [135]
3 years ago
8

Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and

will sell for $100,000 each; 125 are street frontage lots and will sell for $70,000. The developer acquired the land for $1,850,000 and spent another $1,450,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the street frontage lots using value basis.
Business
1 answer:
Solnce55 [7]3 years ago
3 0

Answer:

Explanation:

This is a question about allocation based on how much the street frontage will be valued in future. That value will then be allocated to the joint cost to see how much to apportion to Street Frontage now.

The total value of the Street Frontage after development is,

= 125 lots * $70,000

= $8,750,000

The total value of Golf lots are,

= 100 lots * $100,000

= $10,000,000

Adding them up,

= 10,000,000 + 8,750,000

= $18,750,000

This is the total amount of the company could make and therefore the lot's value.

Company incurred the following costs.

= 1,850,000 * 1,450,000

= $3,300,000

The amount of joint costs to be allocated to Street Frontage will be,

= 8,750,000/ 18,750,000 * 3,300,000

= $1,540,000

The amount to allocate to Street Frontage based on the total value of the lot is $1,540,000.

You might be interested in
Sasha made a career decision that didn’t turn out as planned. What should she do?
alex41 [277]
Stay positive and try again....
3 0
3 years ago
Read 2 more answers
Kirk McCoy is district sales manager for the Jimmy Dean division
arlik [135]

Answer: centralized

Explanation:

Based on the information given in the question, we can infer that McCoy operates a centralized department.

This is a centralized department because McCoy takes the decisions in the organization. In a centralized department, the organizational structure is such that the power regarding the decision is confined to top management, while the followers just follow the instructions

8 0
3 years ago
A(n) ________ strategy focuses on new market and product development, innovation, and joint ventures. privatization external gro
Stolb23 [73]

Answer:

Internal growth.

Explanation:

Internal growth strategy is one that uses internal resources to develop a company internally. It focuses on increasing efficiency, hiring the right people, new product development, and better marketing.

Internal growth is also known as organic or natural growth. Growth results in increased profit which is now reinvested in the business.

6 0
3 years ago
Investment Management Inc. (IMI) uses the capital market line to make asset allocation recommendations. IMI derives the
algol13

Answer:

The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%

Explanation:

Capital Market Line (CML)

Expected return on the market portfolio, E(r_m) = 12 %

Standard deviation on the market portfolio, σ_p = 20%

Risk-free rate, r_f = 5%

E(r_c) =  r_f + [  E(r_p)  - r_f ] × ( σ_c ÷ σ_p)

         = 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)

= 8.5%

5 0
2 years ago
If savers anticipate an inflation rate of 10 percent and require a real return of 5 percent, then savers will require an interes
malfutka [58]
In here, we can say that we are looking for the nominal interest rate. Given is the real interest rate which is 5% and the inflation rate of 10%. The nominal rate of interest is real interest rate plus the inflation rate. Savers will now require an interest rate of 15%
7 0
3 years ago
Other questions:
  • Jerry lives in New Mexico and makes $52,000 a year. If the median annual income in New Mexico is $53,731 and the median annual i
    8·2 answers
  • Show the changes to the t-accounts for the federal reserve and for commercial banks when the federal reserve buys $50 million in
    7·1 answer
  • In a decision support system graphical model typically _____
    7·1 answer
  • Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or
    7·1 answer
  • Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of
    9·1 answer
  • Bonnie is writing a cover letter for a job application.She has written the introduction describing her strengths.However,she is
    12·1 answer
  • Sandy borrows Mike’s car for weekend. The car gets a flat tire, so Sandy purchases a new one. Mike now owns the new tire. This m
    5·1 answer
  • Suppose that 3 months ago you entered into an forward rate agreement, and that under the terms of the contract you will receive
    5·1 answer
  • (THIS IS FOR THE OFFICE FANS!!)
    9·2 answers
  • Lack of access to key distribution channels is considered weakness true or false​
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!