A company purchases a 22,750-square-foot building for $750,000. The building has two separate rental units....
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A company purchases a 22,750-square-foot building for $750,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 7,000 square feet, will be rented for $2.40 per square foot. Unit B contains 15,750 square feet and will be rented for $1.60 per square foot. Compute the amount of joint cost that should be allocated to Unit B using the value basis of allocation:
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