Antonio's bank foreclosed on his retail building when he stopped making loan payments. The nonrecourse loan was secured by the building when he purchased it three years ago for $665,000. Antonio's Form 1099-A, Acquisition or Abandonment of Secured Property, indicated that the debt at the time of foreclosure was $625,000, and the fair market value (FMV) of the building was $680,000. If the building is sold for the FMV, how much of Antonio's personal assets can the bank attempt to collect to satisfy the judgment? (a) $0 (b) $20,000 (c) $40,000 (d) $60,000
Antonio's bank foreclosed on his retail building when he stopped making loan payments. The nonrecourse loan was secured by the building when he purchased it three years ago for $665,000. Antonio's Form 1099-A, Acquisition or Abandonment of Secured Property, indicated that the debt at the time of foreclosure was $625,000, and the fair market value (FMV) of the building was $680,000. If the building is sold for the FMV, how much of Antonio's personal assets can the bank attempt to collect to satisfy the judgment? (a) $0 (b) $20,000 (c) $40,000 (d) $60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Antonio's bank foreclosed on his retail building when he stopped making loan payments. The nonrecourse loan was secured by the building when he purchased it three years ago for $665,000. Antonio's Form 1099-A, Acquisition or Abandonment of Secured Property, indicated that the debt at the time of foreclosure was $625,000, and the fair market value (FMV) of the building was $680,000.
If the building is sold for the FMV, how much of Antonio's personal assets can the bank attempt to collect to satisfy the judgment?
- (a) $0
- (b) $20,000
- (c) $40,000
- (d) $60,000
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