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?

Question

Business

Kristina Cantu

28 October, 09:16

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?

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Answers (1)

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Ciara Kent · Answer 1

In this transaction Vijay received $19,800

Explanation:

To get the total amount that Vijay received we have to add all the items.

Cash = $5,000

Motorcycle = $1,600

Tickets=$1,200

We consider $1,200 because we use the market price. If the buyer want to buy it in the actual market, how much he will pay?

Mortgage=$12,000

We consider the mortgage because Vijay don't have to pay it any more, the buyer will pay it, so we don't have the debt

So Vijay received = $5,000+$1,600+$1,200 + $12,000=$19,800