Phil Collins Realty Corporation purchased a tract of unimproved land for $52,000. 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 |
|
9 |
|
|
$4,050 |
|
| 2 |
|
17 |
|
|
5,400 |
|
| 3 |
|
20 |
|
|
2,700 |
|
Operating expenses for the year allocated to this project total $16,300. 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.