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Question(s) / Instruction(s):

 Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $30,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows.

 Group          No. of Lots                Price per Lot

 1                           9                           $3,000                                                                                                                                      

                          15                           4,000                                                                                                                                      

3                             9                            2,000                                                                                                                                       

Operating expenses for the year allocated to this project total $18,200. Lots unsold at the year-end were as follows.

Group1                                        5 lots

 Group 2                                      7 lots

 Group3                                       2 lots

Required:

At the end of the fiscal year Larsen Realty Corporation instructs you to arrive at the net income realized on this operation to date

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