In fiscal 2014, lvanjoh Realty Corporation purchased unimproved land for $55,000. The land was improved and subdivided into building lots at an additional cost of $34,460. These building lots were all the same size but, because of differences in location, were offered for sale at different prices as follows:

Operating expenses that were allocated to this project totalled $18,200 for the year. At year end, there were also unsold lots remaining, as follows:
Group 1........ 5 lots
Group 2........ 7 lots
Group 3........ 2 lots
Instructions
Determine the year-end inventory and net income of lvanjoh Realty Corporation. Round all amounts to the nearest dollar. Ignore income taxes.

Transcribed Image Text:

Group No. of Lots Price per Lot $3,500 4,500 2,400 15 17 2