Module 7 HW Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 16 Five years ago, Firm SJ purchased land for $114,000 with $10,000 of its own funds and $104,000 borrowed from a commercial bank. The bank holds a recourse mortgage on the land. For each of the following independent transactions, compute SJ's positive or negative cash flow. Assume that SJ is solvent, any recognized loss is fully deductible, and SJ's marginal tax rate is 21 percent. (Cash outflows should be indicated by a minus sign.) points a. SJ sells the land for $47,000 cash and the buyer's assumption of the $80,000 principal balance of the mortgage. b. SJ sells the land for $127,000 cash and pays off the $80,000 principal balance of the mortgage. dSidefaulten the $80.000 mortaage The bank forecloses and sells the land at Dublic auction for $65.400. The bank notifies SJ that it will not pursue collection of the $14,600 remaining debt e. SJ defaults on the $80,000 mortgage. The bank forecloses and sells the land pay off the $14,600 remaining debt. t public auction for $65,400. The bank requires SJ to Answer is complete but not entirely correct. 44,270 44,270 14,250 4,074 7,460 Net cash flow a Net cash flow Net cash flow Net cash flow Net cash flow e