Help Save& Exit Submit 8 Check my work Five years ago, Firm SJ purchased land for $105,000 with $10,000 of its own funds and $95,000 borrowed from a commercial The bank holds a recourse mortgage negatve cash fiow. Assume that SJ ls solvent, any recognized loss is fully deductible, and SJ's marginal tax rate is 21 percent. (Cash pute SJ's positive or on the land. For each of the following independent transactions, com outflows should be indicated by a minus sign.) a. SJ sells the land for $38,000 cash and the buyer's assumption of the $80,000 principal balance of the mortgage. b. SJ sells the land for $118,000 cash and pays off the $80,000 principal balance of the mortgage c SJ sells the land for $84,500 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 $64,500. The bank notifies SJ that it will not pursue collection of the $15,500 remaining debt e. SJ defauits on the $80,000 mortgage. The bank forecloses and sells the land at public auction for $64,500. The bank requires SJ to pay off the $15,500 remaining debt a. Net cash flow b. Net cash flow e. Net cash flow