Five years ago, Firm SJ purchased land for $105,000 with $10,000 of its own funds and $95,000 borrowed from a commercial ba The bank holds a recourse mortgage on the land. For each of the following independent transactions, compute SJ' negative cash flow. Assume that SJ is solvent, any recognized loss is fully deductible, and SJ's marginal tax rate is 21 percent. (Cash outflows should be indicated by a minus sign. a. SJ sells the land for $38,000 cash and the buyer's assumption of the $80,000 principal balance of the mortgage. b. SJ sells the land for $118,000 cash and pays off the $80,000 principal balance of the mortgage c. SJ sells the land for $84,500 cash and pays off the $80,000 principal balance of the mortgage d. SJ defaults on the $80,000 mortgage. The bank forecloses and sells the land at public auction for $64,500. The bank notifies SJ mortgage. The bank forecloses and sells the land at public auction for $64,500. The bank requires SJ that it will not pursue collection of the $15,500 remaining debt. pay off the $15,500 remaining debt. e. SJ defaults on the $80,000 KPrev 2 of 3 Next >