Five years ago, Firm SJ purchased land for $100,000 with $10,000 of its own funds and $90,000
Question:
a. SJ sells the land for $33,000 cash and the buyer’s assumption of the $80,000 principal balance of the mortgage.
b. SJ sells the land for $113,000 cash and pays off the $80,000 principal balance of the mortgage.
c. SJ sells the land for $82,000 cash and pays off the $80,000 principal balance of the mortgage.
d. SJ defaults on the $80,000 mortgage. The bank forecloses and sells the land at public auction for $64,000. The bank notifies SJ that it will not pursue collection of the $16,000 remaining debt.
e. SJ defaults on the $80,000 mortgage. The bank forecloses and sells the land at public auction for $64,000. The bank requires SJ to pay off the $16,000 remaining debt.
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Related Book For
Principles Of Taxation For Business And Investment Planning 2016 Edition
ISBN: 9781259549250
19th Edition
Authors: Sally Jones, Shelley Rhoades Catanach
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