Lynn sold her home on September 1, 2010. She has an existing loan of $200,000 on the house. The interest on the loan is 8%. Terry took over Lynn’s loan with interest paid to August 15, 2010. Terry also assumed an existing three-year fire insurance policy for $360 per year, paid by Lynn until November 15, 2011. Lynn also owes property taxes of $1,900 for the year.