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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).
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