Question

Sansa sold some equipment during the year. She received $10,000 in cash and a $1,000 note receivable from the buyer. The buyer also assumed $1,500 of liabilities associated with the equipment. Sansa incurred selling expenses of $500. What is the Sansa's amount realized in the transaction

Answer 1

Answer:

$12,000

Explanation:

Sandra sold some equipment during the year

She received $10,000 in cash

$1,000 in note receivable

The buyer assumed liabilities of 1,500

The incurred selling expense is $500

Therefore the amount that Sansa realized in the transaction can be calculated as follows

= $10,000 + $1,000 + $1,500-$500

= $12,500-$500

= $12,000