Question

Vijay sells land and receives $5,000 cash, a motorcycle worth $2,000, two tickets to the Super Bowl with a total face value (cost) of $800 but worth $1,200, and the buyer assumes the mortgage on the land of $12,000. What is Vijay's amount received in this transaction?a. $5,000b. $7,800c. $8,200d. $19,800e. $20,200

Answer 1

The correct answer is E

Step-by-step explanation:

The amount which is received or collected by Vijay in the transaction is as follows:

Amount received = Cash received by selling land + Selling motorcycle + Tickets of Super Bowl + Mortgage on the land

where

Cash received by selling land is $5,000

Selling motorcycle is $2,000

Tickets of Super Bowl is $1,200

Mortgage on the land is $12,000

Putting the values above:

= $5,000 + $2,000 + $1,200 + $12,000

= $20,200