For Mike Szabo, the changes in net worth for the year ended December 31, 2012, 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 assetsand 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, 2012.
b. Comment on the statement of changes in net worth.