the following table shows the assets and liabilities of the smith family in 2005 and 2009. 2005 home valued…

the following table shows the assets and liabilities of the smith family in 2005 and 2009. 2005 home valued at $200,000 mortgage of $30,000 car valued at $25,000 car loan of $8,000 2009 home valued at $180,000 home equity loan of $18,000 car valued at $18,000 boat valued at $20,000 personal loan of $5,000 based on the table, which of the following is true? a. from 2005 to 2009, both assets and liabilities decreased. b. from 2005 to 2009, both assets and liabilities increased. c. from 2005 to 2009, assets decreased and liabilities increased. d. from 2005 to 2009, assets increased and liabilities decreased.

the following table shows the assets and liabilities of the smith family in 2005 and 2009. 2005 home valued at $200,000 mortgage of $30,000 car valued at $25,000 car loan of $8,000 2009 home valued at $180,000 home equity loan of $18,000 car valued at $18,000 boat valued at $20,000 personal loan of $5,000 based on the table, which of the following is true? a. from 2005 to 2009, both assets and liabilities decreased. b. from 2005 to 2009, both assets and liabilities increased. c. from 2005 to 2009, assets decreased and liabilities increased. d. from 2005 to 2009, assets increased and liabilities decreased.

Answer

Explanation:

Step1: Calculate total assets in 2005

$200000 + 25000=225000$

Step2: Calculate total liabilities in 2005

$30000 + 8000 = 38000$

Step3: Calculate total assets in 2009

$180000+18000 + 20000=218000$

Step4: Calculate total liabilities in 2009

$18000+5000=23000$

Step5: Analyze changes

Assets decreased from $225000$ to $218000$. Liabilities decreased from $38000$ to $23000$.

Answer:

c. From 2005 to 2009, assets decreased and liabilities decreased.