Final answer:
If an eligible applicant assumes the FSA debt of the farm valued at $80,000 with a remaining loan balance of $97,000 and unpaid taxes of $5,000, the total debt would be $102,000. The provided answer choices do not match this total, indicating more information or clarification is needed.
Step-by-step explanation:
When an eligible applicant wishes to purchase the farm and assume the FSA debt, they will have to consider the remaining balance of the loan, the as is market value of the farm, and the unpaid real estate taxes. In this case, the as is market value of the farm is $80,000, but the remaining balance on the direct FO loan secured by this farm is $97,000, and there is an additional $5,000 in unpaid real estate taxes. Therefore, if the new applicant assumes the loan, the total amount they would be responsible for would be the sum of the remaining loan balance and the unpaid taxes, which is $97,000 + $5,000, resulting in a total of $102,000. Since the market value of the farm is only $80,000, it would seem that the assumption amount could not be definitively determined from the provided options as they all fall below the total debt owed of $102,000. There might be a misunderstanding, or more information might be required to provide a definite answer from the options given.