Initially, your net worth is $100,000. There is then a pandemic, during which you lose your job, you clear out your retirement savings account of $50,000 and spend the whole of your bank deposit of $20,000; your house value falls by 10% from $600,000; your credit card debt increases $25,000; your car depreciates $4,000 in value and your other durables drop in value by $1,000. Your net financial assets change by __________________ and your net worth is now _____________________.

Initially, your net worth is $100,000. There is then a pandemic, during which you lose your job, you clear out your retirement savings account of $50,000 and spend the whole of your bank deposit of $20,000; your house value falls by 10% from $600,000; your credit card debt increases $25,000; your car depreciates $4,000 in value and your other durables drop in value by $1,000. Your net financial assets change by and your net worth is now ___.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 20P: Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows...

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