The following table shows the assets and liabilities of the Chang family in 2007 and 2008.20072008home valued at $315,000home valued at $325,000mortgage of $265,000mortgage of $240,000car valued at $10,000car valued at $6,000car loan of $5,000car loan of $1,000savings of $2,000credit card debt of $1,500Based on the table, which of the following is true?
Answer
A
From 2007 to 2008, both assets and liabilities decreased.
B
From 2007 to 2008, both assets and liabilities increased.
C
From 2007 to 2008, assets decreased and liabilities increased.
D
From 2007 to 2008, assets increased and liabilities decreased.
Explanation
In 2007, the family’s assets totaled $327,000 ($315,000 home + $10,000 car + $2,000 savings), and its liabilities totaled $271,500 ($265,000 mortgage + $5,000 car loan + $1,500 credit card debt). In 2008, assets totaled $331,000 ($325,000 home + $6,000 car), while liabilities totaled $241,000 ($240,000 mortgage + $1,000 car loan). So assets increased and liabilities decreased, matching choice D.
AI-written and checked against the verified answer.