A home owner defaults and he has three mortgages on the house. At the time of the default, the first lien has a balance of $100,000, the second lien has a balance of $200,000, the third lien has a balance of $350,000, and he also owes $5000 in property taxes. The recovery rate for the third lien holder equals 50%. The house price is sold for $ in the foreclosure auction.

A home owner defaults and he has three mortgages on the house. At the time of the default, the first lien has a balance of $100,000, the second lien has a balance of $200,000, the third lien has a balance of $350,000, and he also owes $5000 in property taxes. The recovery rate for the third lien holder equals 50%. The house price is sold for $ in the foreclosure auction.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 16MCQ: John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56...

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