Question
Virginia and Dan each own investment realty that they would like to trade. Virginias property is subject to mortgage debt of $2,000 and has a
Virginia and Dan each own investment realty that they would like to trade. Virginias property is subject to mortgage debt of $2,000 and has a net of mortgage value of $6,000. Dans property is subject to mortgage debt of $30,000 and has a net of mortgage value of $5,000. Virginia and Dan agree to exchange properties and assume each others debt. Dan pays Virginia $1,000 cash, and the exchange is completed. What is the gross selling price of Virginias property?
A : $2,000
B : $6,000
C : $8,000
D : $5,000
E : $35,000
According to the test bank 2019, the answer is C, $8000
Please explain how to calculate this number. Thank you. Correct Answer : C
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