To determine which statement is true regarding the changes in the Chang family's assets and liabilities from 2007 to 2008, we need to calculate and compare the totals for each year.
Assets and Liabilities in 2007:
1. Home value: \[tex]$315,000
2. Car value: \$[/tex]10,000
3. Savings: \[tex]$2,000
Total assets for 2007:
\[
315,000 + 10,000 + 2,000 = \$[/tex]327,000
\]
1. Mortgage: \[tex]$265,000
2. Car loan: \$[/tex]5,000
Total liabilities for 2007:
[tex]\[
265,000 + 5,000 = \$270,000
\][/tex]
Assets and Liabilities in 2008:
1. Home value: \[tex]$325,000
2. Car value: \$[/tex]6,000
3. Savings (considered as a liability when it's a credit card debt): -\[tex]$1,500
Total assets for 2008:
\[
325,000 + 6,000 - 1,500 = \$[/tex]329,500
\]
1. Mortgage: \[tex]$240,000
2. Car loan: \$[/tex]1,000
Total liabilities for 2008:
[tex]\[
240,000 + 1,000 = \$241,000
\][/tex]
Changes from 2007 to 2008:
- Change in assets:
[tex]\[
329,500 - 327,000 = \$2,500 \text{ (increase)}
\][/tex]
- Change in liabilities:
[tex]\[
241,000 - 270,000 = -\$29,000 \text{ (decrease)}
\][/tex]
From the calculations, we observe that the assets increased by \[tex]$2,500, and the liabilities decreased by \$[/tex]29,000 from 2007 to 2008.
Thus, the correct statement is:
d. From 2007 to 2008, assets increased and liabilities decreased.
