Potomac Corporation wants to sell a warehouse that it has used in its business for 10 years. Potomac is asking $450,000 for the

Question

3 years ago

10

Potomac Corporation wants to sell a warehouse that it has used in its business for 10 years. Potomac is asking $450,000 for the

property. The warehouse is subject to a mortgage of $125,000. If Potomac accepts Wyden Inc.’s offer to give Potomac $325,000 in cash and assume full responsibility for the mortgage on the property, what amount does Potomac realize on the sale

Business

1 answer:

Ivanshal [37] · Answer 1 · 2022-09-03T18:50:52+03:00

Answer:

Potomac Corporation will realize $450,000 with the sale of the warehouse

Explanation:

To determine how much money Potomac Corporation realized with the sale of the warehouse we can use the following equation:

money realized = sales price of warehouse + mortgage assumed by buyer

money realized = $325,000 + $125,000 = $450,000