High School

Realization expenses were to be borne by B, for which he is to get a credit of 15,000. Actual realization expenses paid out of the firm's bank account amounted to 20,000. What is the net realization expense borne by B?

a. 5,000
b. 15,000
c. 20,000
d. 35,000

Answer :

Final answer:

The net realization expenses borne by B is $5,000, which is calculated by subtracting the credit B receives ($15,000) from the actual expenses paid ($20,000).

Explanation:

The net realization expenses borne by B is the difference between the actual expenses paid and the credit B is to receive. The actual realization expenses were $20,000, while B was to get a credit of $15,000 for the expenses he was to bear. Therefore, the calculation to find the net amount borne by B is:

Actual Realization Expenses - Credit for B = $20,000 - $15,000 = $5,000

Hence, the net realization expenses borne by B amount to $5,000 (Option a).