Answer:
$11,707,990.4
Explanation:
For computation of joint cost to be allocated to the street frontage lots using value basis first we need to find out follow some steps which is shown below:-
Total cost of golf course lots = Sold cost of golf course × Number of lots
= $109,000 × 100
= $10,900,000
Total cost of street frontage lots = Sold cost of street frontage lots × Street frontage lots
= $79,000 × 125
= $9,875,000
Total cost = Total cost of golf course lots + Total cost of street frontage lots
= $10,900,000 + $9,875,000
= $20,775,000
Total amount of purchase of utilities and land improvement = Total cost + Expenditure of street and utilities improvement
= $20,775,000 + $1,540,000
= $22,315,000
Joint cost allocated = Total cost of golf course lots ÷ Total cost × Total amount of purchase of utilities and land improvement
= $10,900,000 ÷ $20,775,000 × $22,315,000
= $11,707,990.4
