Question: Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $98,000

Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $98,000 each; 125 are street frontage lots and will sell for $68,000. The developer acquired the land for $1,830,000 and spent another $1,430,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using value basis.

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