Question

Sandra sold some equipment for $10,000 in cash, $1,000 of office products, the buyer assumption of her $1,500 loan, and incurred selling expenses of $500. What is the Sandra's amount realized in the transaction?

Answer 1

Sandra's amount realized from the sale is calculated by summing the cash received, value of office products, and the loan assumed by the buyer, and then deducting the selling expenses. Her total amount realized in this transaction is $12,000.

Step-by-step explanation:

The amount realized from the sale of Sandra's equipment would be the sum of all the cash and non-cash benefits she received, minus any selling expenses incurred. Sandra received $10,000 in cash, $1,000 in office products, and had a $1,500 loan assumed by the buyer. To calculate the total amount realized, these values should be added together. However, since she incurred $500 in selling expenses, this must be subtracted from the total sum of cash and non-cash benefits.

The calculation would be as follows:
$10,000 (cash) + $1,000 (office products) + $1,500 (loan assumption) - $500 (selling expenses) = $12,000 (total amount realized).