Arrow Construction Company Ltd$.$ purchased a farm from K$.$ Jones.

Arrow and Jones completed the transaction under the following terms:

a check from Arrow to Jones for $$140,000$; bank loan assumed by

Arrow, $$100,000.$ Legal, accounting, and brokerage fees amounted to

$$20,000.$ It was Arrow$$s intention to build homes on the property after

sub$$dividing$.$ Crops on the farm were sold for $$6,000$; a house was sold

for $$1,600$; barns were razed at a cost of $$6,000.$ Salvaged lumber was

sold for $$4,400.$ The property was cleared and levelled at a cost of

$$10,000.$ The necessary property was turned over to the township for

roads, schools, churches, and playgrounds. Riverside still expected to

secure a total of $500$ identical lots from the remaining land.

Required: Prepare a schedule showing the cost to Arrow of the $500$

lots

Answer rating: 100% (QA)

Schedule showing the cost to Arrow of the 500 lots Purchase ... View the full answer