Fi560
Sam and his wife Ann purchased a home in Lubbock, Texas in 1980 for $100,000. Their original home mortgage was for $90,000. The house has a current market value of $175,000 and a replacement value of $200,000. They still owe $55,000 on their home mortgage. Sam and Sally are now constructing their balance sheet. How should their home be reflected on their current personal balance sheet?
a.) $200,000 asset and $55,000 liability
b.) $200,000 asset and $90,000 liability
c.) $175,000 asset and $55,000 liability
d.) $175,000 asset and $90,000 liability
e.) $100,000 asset and $55,000 liability | c.) $175,000 asset and $55,000 liability | ______ would not be listed as a liability on your balance sheet.
a.) Taxes owed
b.) Loan balances
c.) Bank credit card charges
d.) Savings accounts
e.) Rent due | d.) Savings accounts | Sonny and Cher have a net worth of $35,000 and total assets of $200,000. If their revolving credit and unpaid bills total $2,200, What are their long-term liabilities?
a.) $115,000
b.) $140,000
c.) $142,200
d.) $162,800
e.) $165,000 | d.) 162,800 | Ben and Jack both earned $60,000 this year. Ben (age 30) is married with two children, and Jack (age 68) is single with no dependents. Which of the following is true regarding the amount of Social Security taxes they will pay?
a.) They will pay the same amount of Social Security taxes
b.) Ben will pay less Social Security taxes because he is married
c.) Ben will pay less Social Security taxes because he has children
d.) Jack will pay less Social Security taxes because he is single
e.) Jack will pay less Social Security taxes because he is over age 65 | a.) They will pay the same amount of Social Security taxes | You would typically NOT include _____ in your gross income.
a.) wages and salaries
b.) life insurance death benefit payments
c.) interest and dividends
c.) pension income
e.) gambling winnings | b.) Life insurance death benefit payments | ______ would be
a.) $200,000 asset and $55,000 liability
b.) $200,000 asset and $90,000 liability
c.) $175,000 asset and $55,000 liability
d.) $175,000 asset and $90,000 liability
e.) $100,000 asset and $55,000 liability | c.) $175,000 asset and $55,000 liability | ______ would not be listed as a liability on your balance sheet.
a.) Taxes owed
b.) Loan balances
c.) Bank credit card charges
d.) Savings accounts
e.) Rent due | d.) Savings accounts | Sonny and Cher have a net worth of $35,000 and total assets of $200,000. If their revolving credit and unpaid bills total $2,200, What are their long-term liabilities?
a.) $115,000
b.) $140,000
c.) $142,200
d.) $162,800
e.) $165,000 | d.) 162,800 | Ben and Jack both earned $60,000 this year. Ben (age 30) is married with two children, and Jack (age 68) is single with no dependents. Which of the following is true regarding the amount of Social Security taxes they will pay?
a.) They will pay the same amount of Social Security taxes
b.) Ben will pay less Social Security taxes because he is married
c.) Ben will pay less Social Security taxes because he has children
d.) Jack will pay less Social Security taxes because he is single
e.) Jack will pay less Social Security taxes because he is over age 65 | a.) They will pay the same amount of Social Security taxes | You would typically NOT include _____ in your gross income.
a.) wages and salaries
b.) life insurance death benefit payments
c.) interest and dividends
c.) pension income
e.) gambling winnings | b.) Life insurance death benefit payments | ______ would be