The following is a list of Corey's liabilities and possessions:
He owns a mountain bike worth $300, credit card debt of $150, cash of $200, Harmon Kill brew baseball card worth the $400, $1,200 in a bank saving account, and electric bill due for $250.
1. Construct Corey's balance sheet and calculate his net worth.
2. For the following events, explain how each event affects Corey's liabilities, assets, wealth and saving. Treat each event as independent and separate from each other.
a. Corey goes to a baseball card convention and identifies that his baseball card is a worthless forgery.
b. Corey uses $150 from his paycheck to pay off his credit card balance. The remainder of his earnings is spent.
c. Corey crashed his mountain bike, and the injured bike is worth $200 less.