Mr. Schmalz is going to exchange his home for a farm in Missouri owned by Mr. Lubinsky.
Mr. Schmalz agrees to allow Mr. Lubinsky, the owner of the 240 acre farm, $600 an acre against the cost of Mr. Schmalz's home, which is listed for $235,000.
How much cash difference will Mr. Lubinsky owe Mr. Schmalz at closing ?
The answer is below the wildlife photo. Take your time and try not to peek.
Let's find out the cost of the farm by multiply the number of acres, 240, times the cost per acre, 600, and we find that the total cost of the farm is $144,000.
If the price of the home is $235,000, subtract $144,000 from the listing price and we have a balance of $91,000 due.