Q1. DoranRealtyCompanypurchasedaplotofgroundfor$1,900,000andspent$4,100,000in developingitforbuildin

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Q1.

DoranRealtyCompanypurchasedaplotofgroundfor$1,900,000andspent$4,100,000in developingitforbuildinglots.ThelotswereclassifiedintoHighland,Midland,andLowlandgrades,tosell at$120,000,$90,000,and $60,000 each,respectively.

Instructions

Completethetable belowto allocatethe costof the lotsusing arelative sales value method.

No.of

Selling

Total

%of

     Apportio

nedCost       

Grade

Lots

   Price    

  Revenue

Total Sales

    Total     

  PerLot   

Highland

20

$

$

$

$

Midland

40

$

$

Lowland

100

$

$

160

$               

$               

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