Question

a buyer doesn't have adequate cash to close a proposed transaction, but the seller agrees to accept a sailboat owned by the buyer in exchange for a $20,000 reduction in the purchase price. this is a/an:

Answer 1

In this scenario, the buyer doesn't have enough cash to close the transaction but the seller agrees to accept a sailboat owned by the buyer in exchange for a $20,000 reduction in the purchase price and it is an example of a Trade or barter transaction.

Step-by-step explanation:

In this scenario, the buyer doesn't have enough cash to close the transaction, so the seller agrees to accept a sailboat owned by the buyer as partial payment. The seller reduces the purchase price by $20,000, which is the equivalent value of the sailboat. This arrangement is known as a trade. It allows the buyer to use a non-cash asset to make up for the cash shortage, while the seller still receives value in exchange for the goods being sold.

For example, let's say the original purchase price was $100,000. Since the buyer doesn't have enough cash, they offer their sailboat, which is valued at $20,000. The seller agrees to accept the boat and reduces the purchase price to $80,000 ($100,000 - $20,000).

While this specific scenario is related to a business transaction, the concept of trading non-cash assets for goods or services can be applied in various contexts, such as bartering or exchanging goods in the marketplace.