Suppose you invested $20,000 of your own money and had a $80,000 mortgage with interest rate of 6

Accounting Aug 05, 2020

Suppose you invested $20,000 of your own money and had a $80,000 mortgage with interest rate of 6.5 percent. After one year, you sell the property for $130,000. What is your gross profit? $30,000 $50,000 $90,000 $130,000 $10,000

Expert Solution

Since it is the gross profit hence the interest part has not been taken into consideration.

Gross profit = 130000 - $ 80000 - $ 20000 = $ 30000

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