Client Phil Collins Realty Corporation purchased a tract of unimproved land for $55,000 This land was improved and subdivided into building lots at an additional cost of $34,460 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 $3,000 2 15 4,000 3 17 2,400 Operating expenses for the year allocated to this project total $18,200 Lots unsold at the yearend were as follows Group 1 5 lots Group 2 7 lots Group 3 2 lots