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Johnson Realty Bought a 2,000-Acre Island for $10,000,000 and Divided

Question 47

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Johnson Realty bought a 2,000-acre island for $10,000,000 and divided it into 200 equal size lots.
Johnson Realty bought a 2,000-acre island for $10,000,000 and divided it into 200 equal size lots. The average selling price was $160,000 per lot during 2017 when 50 lots were sold. During 2018,the company bought another 2,000-acre island and developed it exactly the same way.Lot sales in 2018 totaled 300 with an average selling price of $160,000.All costs were the same as in 2017. Required: Prepare income statements for both years using both absorption and variable costing methods.
The average selling price was $160,000 per lot during 2017 when 50 lots were sold.
During 2018,the company bought another 2,000-acre island and developed it exactly the same way.Lot sales in 2018 totaled 300 with an average selling price of $160,000.All costs were the same as in 2017.
Required:
Prepare income statements for both years using both absorption and variable costing methods.

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