Purchase (Section 217),
Lots (Section 217),
These accounts represent a rather complicated purchase in which the concern bought a tract of about 12,000 acres, a part of which was waste land, such as swamps, etc. The tract was divided into ten-acre lots, and it was agreed that half the gross receipts should go to the owner until he had received $4 an acre, after which the concern was to reimburse itself for all expense incurred in connection with the land; any further receipts to be divided, one-fourth going to the owner and three-fourths to the concern. The tract was developed several years prior to the taking of the present trial balance and practically all of it was sold, the total available acreage being 7,500 acres; the remaining acreage consisting of roads and unsalable land. An examination of the Contracts account showed that all cancellations had been made and that the balance represented "live" contracts.