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Anna007 [38]
3 years ago
15

Julio has a house worth $220,000. He has a $175,000 mortgage. Julio says that in this situation, his asset is really only $45,00

0. Which statement explains whether Julio is correct?
A. Julio is correct because the $45,000 equity in the house is the real asset.

B. Julio is correct because he can pay $45,000 and have no more liabilities.

C. Julio is not correct because the same item cannot represent both an asset and a liability.

D. Julio is not correct because the house cannot be worth more than the mortgage.
Mathematics
2 answers:
ycow [4]3 years ago
8 0

Answer:

I took the test and i got 100% the answer is A.

Step-by-step explanation:

Sveta_85 [38]3 years ago
4 0
A.

He owes 175000, but the house is worth 220000
Equity (or an asset) is equal to how much something is worth minus how much you still owe

220000-175000 = 45000
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