Question: A company purchases a 8 , 8 2 0 - square - foot building for $ 3 3 5 , 0 0 0 . The

A company purchases a 8,820-square-foot building for $335,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 2,520 square feet, will be rented for $2.00 per square foot. Unit B contains 6,300 square feet and will be rented for $1.20 per square foot.
How much of the joint cost should be allocated to Unit A and to Unit B using the value basis of allocation?A company purchases a 8,820-square-foot building for $335,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 2,520 square feet, will be rented for $2.00 per square foot. Unit B contains 6,300 square feet and will be rented for $1.20 per square foot.
How much of the joint cost should be allocated to Unit A and to Unit B using the value basis of allocation?
\table[[,Rental value,Percent of rental value,Joint Cost,\table[[Allocated],[cost]]],[,Numerator,Denominator,% of Mkt Value],[Unit A,,,,,,],[Unit B,,,,,,],[Totals,,,,,,]]
 A company purchases a 8,820-square-foot building for $335,000. The building has

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