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A company purchases a 7,260-square-foot commercial building for $445,000 and spends an additional $52,000 to divide the
Posted: Sun Jun 05, 2022 9:28 pm
by answerhappygod
- A Company Purchases A 7 260 Square Foot Commercial Building For 445 000 And Spends An Additional 52 000 To Divide The 1 (51.71 KiB) Viewed 76 times
A
company purchases a 7,260-square-foot commercial building for $445,000 and spends an additional $52,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 1,485 square feet, will be rented for $2.00 per square foot. Unit B contains 5,775 square feet and will be rented for $1.20 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation? Market Value Percent of Market Value Joint Cost Apportioned Cost % of Mkt Value Unit A Unit B Totals Numerator Denominator