Question

Dante listed his assets and liabilities on a personal balance sheet. Dante's balance sheet (August 2013) shows the following:

Assets:
- Cash: 900
- Investments:1,100
- House: 150,000
- Car:8,000

Liabilities:
- Credit Card: 4,000
- Student Loan:1,000
- Mortgage: 100,000
- Car Loan:5,000

Which statement is true about the value of Dante's assets and liabilities?
1) He has $50,000 more in assets than in liabilities.
2) He has $50,000 more in liabilities than in assets.
3) He has $110,000 more in liabilities than in assets.
4) He has $160,000 more in assets than in liabilities.

Answer 1

Dante has $49,000 more in assets than in liabilities.

Step-by-step explanation:

To determine the value of Dante's assets and liabilities, we need to calculate the total value of assets and liabilities separately and then subtract the liabilities from the assets.

Value of Assets = Cash + Investments + House + Car = $900 + $1,100 + $150,000 + $8,000 = $159,000

Value of Liabilities = Credit Card + Student Loan + Mortgage + Car Loan = $4,000 + $1,000 + $100,000 + $5,000 = $110,000

Therefore, Dante has $159,000 in assets and $110,000 in liabilities. By subtracting the liabilities from the assets, we get $159,000 - $110,000 = $49,000.

The correct statement is: He has $49,000 more in assets than in liabilities.