1) Charles wants to relocate to Florida. He decided to sell his rental property, which is located in Brooklyn, NY. Charles accepted the following terms:

Charles received $1,200,000 in cash and was relieved of $800,000 mortgage. (this was the outstanding balance at the time the transaction closed). Charles was responsible for broker's fees and legal costs associated with transferring the mortgage of $35,000 and $17,500, respectively. What is the net selling price for this transaction?