Martina and Anton Are Attempting to Qualify for Total Mortgage

question 19

Multiple Choice

Martina and Anton are attempting to qualify for total mortgage financing of $1486,heating costs of $68,and they have a car loan payment of $346.What minimum gross monthly income will they need to qualify for both GDS ratio of 30 percent and TDS ratio of 40 percent?

• A)$6333
• B)$4750
• C)$5180
• D)$4953

---

Definitions:

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings, reflecting the residual assets of the company that would be returned to shareholders if all assets were liquidated and all debts paid.

Increase Assets

Enhancing the value of a company's resources or acquiring new physical, financial, or intangible properties that can provide economic benefits.

Decrease Assets

The reduction in the value or amount of the resources owned by a company, which can result from sales, disposal, or depreciation.

Accounting Equation

The fundamental equation underpinning the double-entry bookkeeping system: Assets = Liabilities + Equity.