Razor Technologies reported $106,000 of income for the year by using variable costing. The company had no beginning inventory, planned and actual production of 50,000 units, and sales of 47,000 units. Standard variable manufacturing costs were $15 per unit, and total budgeted fixed manufacturing overhead was $150,000. If there were no variances, income under absorption costing would be:

protected by 15,000

Explanation:

the owner equity in the property is for:

60,000 - 35,000 = 25,000

the exemtion is up to 15,000

When the exemption is greater than his equity in the house the creditors can force the sale like in this case. However the man will receive proceeds from the sale.

After the mortage is paid, the proceeds form the sale will split 15,000 to the man and the rest from the credit card debts.