Home Properties is developing a subdivision that includes $420$ home lots. The $150$ lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the $270$ lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $$56,000$ and for each Hilltop lot is $$95,000.$ The developer acquired the land for $$1,600,000$ and spent another $$3,500,000$ on street and utilities improvements.

Assign the joint land and improvement costs of $$5,100,000$ to the Canyon section and the Hilltop section using the value basis of allocation.

Note: Do not round your intermediate calculations.Exercise $24-22$A $($Algo$)$ Assigning joint costs LO C$2$

Home Properties is developing a subdivision that includes $420$ home lots. The $150$ lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the $270$ lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $$56,000$ and for each Hilltop lot is $$95,000.$ The developer acquired the land for $$1,600,000$ and spent another $$3,500,000$ on street and utilities improvements.

Assign the joint land and improvement costs of $$5,100,000$ to the Canyon section and the Hilltop section using the value basis of allocation.

Note: Do not round your intermediate calculations.