Julio has a house worth $220,000. He has a $175,000 mortgage. Julio says that in this situation, his asset is really only $45,000. 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.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Julio has a house worth $220,000. He has a $175,000 mortgage. Julio says that in this situation, his asset is really only $45,000. Which ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Is it really necessary for service firms to engage in research and development? In planning for production and operations control?
Answers (1)
g If I make a one-time deposit now of $1500 for 4 years, with an 8% nominal interest rate, compounded annually, what will be the effective interest rate?
Answers (1)
Assume that, in the population, 95 million people worked for pay last week, 5 million people did not work for pay but had been seeking a job, 5 million people did not work for pay and had not been seeking a job for the past several months, and 45
Answers (1)
During a concealment investigation, an investigator fails to recognize that an invoice had been forged. This represents a: a. non-sampling risk. b. sampling risk. c. systematic risk. d. systemic risk.
Answers (1)
On January 1, a company has 700,000 shares of issued and outstanding common stock. On March 1, the company repurchases 60,000 shares. On June 1, it effects a 2-for-1 stock split. On November 1, it issues 240,000 shares.
Answers (1)
New Questions in Business
Examples of transaction costs include (check all that apply) : A. the cost of the externality. B. the cost of monitoring an agreement. C. the cost of drafting a contract or agreement. D.
Answers (1)
Josh, Inc. is faced with the choice of either producing a newly designed product, XX-30, to stock in anticipation of demand or to customer order. The demand for the product is expected to be 5,000 units per week.
Answers (1)
Gwen is a psychologist who maintains an office in a professional suite. She often spends time doing paperwork and scheduling in her home officeWhich of the following is true?
Answers (1)
A certificate of deposit will often result in a penalty for withdrawing funds before the maturity date. If the penalty involves two months of interest, what would be the amount for early withdrawal on a $20,000, 4 percent CD?
Answers (1)
Androscoggin Copper can grow at 5% per year for the indefinite future. It's selling at $100, and next year's dividend is $5.
Answers (1)