How much gross margin should link realty


In 2004, Link Realty Company purchased a tract of land for $9,000,000. Link developed the land into an industrial park at an additional cost of $750,000. the park was subdivided in 10 lots.

  • Lots Selling price per lot
  • A, B, C, D $1,000,000
  • E, F, G $1,250,000
  • H, I, J $1,750,000

During 2005, Link sold Lots A, D, G, and I. How much gross margin should Link Realty Company realize from the sale of lots during 2005? a.$750,000 b. $1,000,000 c.$1,250,000 d. $1,500,000
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Accounting Basics: How much gross margin should link realty
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