Virginia and Dan each own investment realty that they would like to trade. Virginia's property is subject to mortgage debt of $2,000 and has a net of mortgage value of $6,000. Dan's 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 other's debt. Dan pays Virginia $1,000 cash, and the exchange is completed. What is the gross selling price of Virginia's property?
A)$2,000
B)$6,000
C)$8,000
D)$5,000
E)$35,000

Question

Quizplus · Accepted Answer

To find the gross selling price of Virginia's property, we need to add the net of mortgage value and the amount of mortgage debt. 
So, for Virginia: 
Gross selling price = net of mortgage value + mortgage debt 
Gross selling price = $6,000 + $2,000 
Gross selling price = $8,000

Therefore, the answer is (C) $8,000.

Virginia and Dan Each Own Investment Realty That They Would