Question

Matthew currently has $2,000 in his checking account and $10,000 in a savings account. He owns a home worth $120,000 and he owes $75,900 on his mortgage. His investments in a 401(k) are valued at $12,789. He owes $29,526 on his student loans and just bought a new car. The car is currently valued at $19,965. His auto loan balance is $19,156. He is carrying a balance on two credit cards that adds up to $5,234. What is the value of Matthew's total assets? (Do not include the $ sign or commas in your answer).

Answer 1

Answer:

164754

Explanation:

Assets are resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity (AAA).

Based on the data given, assets is computed as follows;

Cash (checking account) 2000

Cash (savings account) 10000

Home 120000

Investments 12789

Car 19965

TOTAL ASSETS 164754

Mortgage is recorded separated by the home and is treated as liability

Loan & Auto loan are also liabilities of Matthew

Credit cards balances are only his indication of capacity to buy which is if that happens said transaction would result into an obligation of Matthew to pay or simply his liability