A person is selling some property and wishes to obtain payment partially in cash with the remainder

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A person is selling some property and wishes to obtain payment partially in cash with the remainder in the form of a carryback note receivable.

a. Why might the seller wish to increase the sales price and reduce the interest rate on the carryback note? Assume that the cash down payment and the total amount of payments will not change.

b. Would the buyer likely agree to the increased price and decreased interest rate? Explain, why or why not?

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Fundamentals Of Taxation 2015

ISBN: 9781259293092

8th Edition

Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone

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Question Posted: Feb 04, 2016 05:46 AM

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A person is selling some property and wishes to obtain payment partially in cash with the remainder

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a The seller is likely interested in maximizing the aftertax benefits of the sale If the seller incr...View the full answer

Fundamentals Of Taxation 2015

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