Pleasant Hills Properties is developing a golf course subdivision that includes 250 home lots; 100 lots are golf course lots and will sell for $95,000 each; 150 are street frontage lots and will sell for $65,000. The developer acquired the land for $1,800,000 and spent another $1,400,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the street frontage lots using value basis. (Round your intermediate percentages to 2 decimal places.)

The relevant multiple choices are as follows:

$1,920,000.

$720,000.

$1,620,800.

$1,579,200.

$1,080,000.

The correct answer is the third option which is $1,620,800.

Explanation:

Total joint costs=cost of land acquisition+cost of street and utilities improvement

cost of land acquisition=$1,800,000

cost of street and utilities improvement=$1,400,000

total joint costs=$1,800,000+$1,400,000=$3,200,000

sales  value of the golf course lots=100*$95,000=$9,500,000

sales value of street frontage lots=150*$65,000=$ 9,750,000

Total sales value =$9,500,000+$9,750,000=$ 19,250,000

joint costs to street frontage lots=$3,200,000*$9,750,000/$19,250,000.00

                                                     =$ 1,620,779.22  

The closest option is the third option above.

a is the correct answer, tell me if im right

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"