Statement of changes in net worth

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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:

Stock options

3,000

Land

7,000

Residence

5,000

Unrealized decreases in net worth:

 

Boat

3,000

Jewelry

1,000

Furnishings

4,000

Estimated income taxes on the differences

 

between the estimated current values of

 

assets and the estimated current amounts

 

of liabilities and their tax  bases

15,000

Net worth at the beginning of   year

150,000

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.

Reference no: EM131002189

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