Virginia and Dan Each Own Investment Realty That They Would

question 93

Multiple Choice

Virginia and Dan each own investment realty that they would like to trade. Virginia's property is subject to mortgage debt of $2,000 and has a net of mortgage value of $6,000. Dan's property is subject to mortgage debt of $30,000 and has a net of mortgage value of $5,000. Virginia and Dan agree to exchange properties and assume each other's debt. Dan pays Virginia $1,000 cash, and the exchange is completed. What is the gross selling price of Virginia's property?

• A)$2,000
• B)$6,000
• C)$8,000
• D)$5,000
• E)$35,000

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Definitions:

Accounting Controls

Processes and procedures implemented by a company to ensure the accuracy and integrity of its financial statements and to prevent fraud.

Internal Control Measures

Procedures and policies implemented by a corporation to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.

Bank Accounts

Financial accounts maintained by individuals or entities with a banking institution, facilitating the deposit and withdrawal of funds.

NSF Fee

A charge issued by a bank against a customer's account for writing a check without sufficient funds to cover it, also known as a non-sufficient funds fee.