Larsen 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 $28,000. 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 |
|
8 |
|
$4,950 |
| 2 |
|
15 |
|
6,600 |
| 3 |
|
21 |
|
3,300 |
Operating expenses for the year allocated to this project total $15,700. Lots unsold at the year-end were as follows.
| Group 1 |
|
4 lots |
| Group 2 |
|
6 lots |
| Group 3 |
|
2 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.)