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How is an automobile that is not fully paid off listed for on a balance sheet?

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Final answer:

An automobile not fully paid off is listed as an asset on a balance sheet at its current value, while the unpaid loan amount is listed as a liability, and the net worth is the difference between the two.

Step-by-step explanation:

If an individual or business owns an automobile that is not fully paid off, it would be listed as an asset on a balance sheet and the corresponding loan as a liability. The automobile is listed at its current estimated value under assets. The unpaid portion of the loan for the auto purchase is listed under liabilities, often as a 'note payable' or 'long-term debt', depending on the duration left to pay off the loan.

For example, if an individual has a car worth $20,000 and they owe $15,000 on the car loan, the balance sheet would reflect the car as a $20,000 asset and the $15,000 as a liability. The net worth in regards to the car would be the difference between the asset value and the liability, which is $5,000 in this case.

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