Tracy Borrows $30,000 from Secure State Bank

question 5

Multiple Choice

Tracy borrows $30,000 from Secure State Bank.The lender accepts Tracy's equity in her home as collateral,which can be seized if the loan is not repaid on time.With respect to any proceeding that occurs if Tracy fails to make the payments,this loan is subordinated.This means that it

• A)takes a higher priority.
• B)takes a lower priority.
• C)has the same priority as the primary mortgage.
• D)fluctuates with the market value of the property.

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Definitions:

Employers Withhold

The practice by employers of deducting certain amounts from employees' wages for tax purposes before they are paid.

Tax Liability

The total amount of tax that an individual or corporation is legally obligated to pay to a taxing authority.

Employers Withhold

The practice of employers deducting a portion of employees' wages or salaries for tax purposes before issuing the net amount to the employee.

Tax Return

The form(s) filed with a taxing authority that reports income, expenses, and other pertinent tax information, used to calculate tax liability.