If the land is sold for $450,000, what amount will Roberts receive in the final settlement?

Question

Quizplus · Accepted Answer

From the information given, we can see that Roberts has a 5/9 ownership interest in the land. Therefore, Roberts will receive 5/9 of the sale price.

5/9 x $450,000 = $250,000

However, we must also subtract the outstanding mortgage balance of $112,500 from this amount.

$250,000 - $112,500 = $137,500

Therefore, Roberts will receive $137,500 in the final settlement. The correct answer is choice D, $362,500.

If the Land Is Sold for $450,000, What Amount Will