In order to reduce their debt, the Johnsons sold some real estate property valued at $165,000 for $143,000. They paid off a loan balance of $100,000 and put the rest in savings. Which of the following is a true statement?

The Johnsons had $143,000 from the sale and used $100,000 to pay off the loan, leaving $43,000 to add to savings. Savings are liquid assets, so their liquid assets increased. Their net worth did not increase: they sold property valued at $165,000 for $143,000, a $22,000 loss in asset value.

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