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A seller's costs are a $23,400 commission, $396 in documentary transfer tax, $650 for a buyer's policy of title insurance, $250 in escrow fees, and a $246,000 loan payoff. The seller will receive a $360,000 purchase price and a $350 refund on property taxes paid in advance. How much are the seller's proceeds

Respuesta :

Answer:

The seller's proceeds is $89,654.

Explanation:

The seller's proceed is the difference between the total inflows and the out flows. This can be calculated as follows:

Particulars                                                            $                      $        

Inflows:

Purchase price or sales proceeds                360,000

Refund on property tax in advance                    350  

Total inflows                                                                            360,350

Outflows:

Commission                                                    (23,400)

Documentary transfer tax                                   (396)

buyer's policy of title insurance                         (650)

Escrow fees                                                         (250)

Loan payoff                                                   (246,000)  

Total outflows                                                                           (270,696)  

Proceeds                                                                                     89,654    

Therefoe, the seller's proceeds is $89,654.

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