Harpreet is selling her home in Burlington for $920,000. She still owes $480,000 on her mortgage and has a real estate commission of 4.5% + HST (13%) based on the sale price. Her legal fees and disbursements are estimated at $2,200 + HST. What are Harpreet's net proceeds from the sale, assuming no other adjustments?

Question: Harpreet is selling her home in Burlington for $920,000. She still owes $480,000 on her mortgage and has a real estate commission of 4.5% + HST (13%) based on the sale price. Her legal fees and disbursements are estimated at $2,200 + HST. What are Harpreet's net proceeds from the sale, assuming no other adjustments?

Answer options: ✅ $390,750.40

• $395,200.00
• $435,200.00
• $400,000.00

Correct answer: $390,750.40

Explanation: Calculate total commission: $920,000 * 0.045 = $41,400. HST on commission: $41,400 * 0.13 = $5,382. Total commission with HST: $46,782. Legal fees with HST: $2,200 * 1.13 = $2,486. Total deductions: $46,782 (commission) + $2,486 (legal fees) + $480,000 (mortgage) = $529,268. Net proceeds: $920,000 - $529,268 = $390,732.