Vijay sells land and receives $5,000 cash, a motorcycle worth $1,600, and two tickets to the Super

Question:

Vijay sells land and receives $5,000 cash, a motorcycle worth $1,600, and two tickets to the Super Bowl with a total face value (cost) of $800 but worth $1,200. In addition, the buyer assumes the mortgage on the land of $12,000. What is Vijay’s amount received in this transaction?

a. $5,000

b. $7,800

c. $8,200

d. $19,800

e. $20,200

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...

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