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Sagot :
Answer:
The correct answer is "10,000".
Explanation:
The given values are:
Fair market value,
= $300,000
Andrew's adjusted basis,
= $190,000
Its fair market value,
= $250,000
Steve's mortgage,
= $120,000
Andrew's mortgage,
= $70,000
According to the question,
Steve is losing out,
= [tex]300000 - 200000 + 70000[/tex]
= [tex]170,000[/tex]
Andrew is losing out,
= [tex]250000 - 190000 + 120000[/tex]
= [tex]180,000[/tex]
Now,
Steve gains the amount,
= [tex]Andrew \ losing-Steve \ losing[/tex]
= [tex]180,000 - 170,000[/tex]
= [tex]10,000[/tex]
So that Andrew loses the same amount as Steve i.e.,
= 10,000
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