Ciano Co. acquired a tract of land for P2,000,000. The land was developed and subdivided into...

 

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Ciano Co. acquired a tract of land for P2,000,000. The land was developed and subdivided into residential lots at an additional cost of P200,000. Although the subdivided lots are relatively equal in sizes, they were offered at different sales prices due to differences in terrain. Information on the subdivided lots is shown below: Price per lot Lot group A B с No. of lots 4 10 15 480,000 240,000 192,000 During the year, 2 lots from the A group, 3 lots from the B group and 12 lots from the C group were sold. How much gross income is recognized during the year? Ciano Co. acquired a tract of land for P2,000,000. The land was developed and subdivided into residential lots at an additional cost of P200,000. Although the subdivided lots are relatively equal in sizes, they were offered at different sales prices due to differences in terrain. Information on the subdivided lots is shown below: Price per lot Lot group A B с No. of lots 4 10 15 480,000 240,000 192,000 During the year, 2 lots from the A group, 3 lots from the B group and 12 lots from the C group were sold. How much gross income is recognized during the year?

Answer rating: 100% (QA)

Calculating Gross Income 1 Cost per LOT Total cost P2000000 P200000 P2200000 Number of lo... View the full answer