For Bob and Sue, the changes in net worth for the year ended December 31, 2008, follow:
Realized increases in net worth:
Salary $ 60,000
Dividend income 2,500
Interest income 2,000
Gain on sale of marketable securities 500
Realized decreases in net worth:
Income taxes 20,000
Interest expense 6,000
Personal expenditures 29,000
Unrealized increases in net worth:
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Stock options
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3,000
|
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Land
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7,000
|
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Residence
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5,000
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|
Unrealized decreases in net worth:
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|
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Boat
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3,000
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Jewelry
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1,000
|
|
Furnishings
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4,000
|
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Estimated income taxes on the differences
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|
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between the estimated current values of
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|
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assets and the estimated current amounts
|
|
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of liabilities and their tax bases
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15,000
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Net worth at the beginning of year
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150,000
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Required:
a. Prepare a statement of changes in net worth for the year ended December 31, 2008.
b. Comment on the statement of changes in net worth.