Final Answer:
The answer of the statement that " Bob sells his property to Carl. Carl makes a down payment of $15,000. Bob carries back a note for the balance. On the closing statement, the carryback note would be shown as" is 3) A credit to the seller and a debit to the buyer
Step-by-step explanation:
The carryback note represents a debt owed by the buyer (Carl) to the seller (Bob). On the closing statement, this debt is considered an amount owed by the buyer and is thus recorded as a credit to the seller (Bob) and a debit to the buyer (Carl).
In real estate transactions, a carryback note is essentially a financing arrangement where the seller provides a loan to the buyer for a portion of the property's purchase price. This loan is typically documented in the form of a promissory note.
The down payment made by the buyer is usually recorded as a credit to the seller since it reduces the amount owed, and the remaining balance, represented by the carryback note, is recorded as a debt or debit to the buyer.
Therefore, on the closing statement, the entry would be 3) a credit to the seller and a debit to the buyer, reflecting the financial arrangement between Bob and Carl in this property transaction.