Dante listed his assets and liabilities on a personal balance sheet.

\begin{tabular}{|c|c|c|c|}
\hline \multicolumn{4}{|c|}{Dante's Balance Sheet (August 2013)} \\
\hline \multicolumn{2}{|c|}{Assets} & \multicolumn{2}{|c|}{Liabilities} \\
\hline cash & [tex]$\$[/tex]900[tex]$ & credit card & $[/tex]\[tex]$4,000$[/tex] \\
\hline investments & [tex]$\$[/tex]1,100[tex]$ & student loan & $[/tex]\[tex]$1,000$[/tex] \\
\hline house & [tex]$\$[/tex]150,000[tex]$ & mortgage & $[/tex]\[tex]$100,000$[/tex] \\
\hline car & [tex]$\$[/tex]8,000[tex]$ & car loan & $[/tex]\[tex]$5,000$[/tex] \\
\hline Total & & Total & \\
\hline
\end{tabular}

Which statement is true about the value of Dante's assets and liabilities?

A. He has [tex]$\$[/tex]50,000[tex]$ more in assets than in liabilities.
B. He has $[/tex]\[tex]$50,000$[/tex] more in liabilities than in assets.
C. He has [tex]$\$[/tex]110,000[tex]$ more in liabilities than in assets.
D. He has $[/tex]\[tex]$160,000$[/tex] more in assets than in liabilities.



Answer :

To analyze Dante's balance sheet and determine the true relationship between his assets and liabilities, let's follow these steps step-by-step:

1. Sum of Assets:
- Cash: \[tex]$900 - Investments: \$[/tex]1,100
- House: \[tex]$150,000 - Car: \$[/tex]8,000

The total value of Dante's assets is calculated as:
[tex]\[ \text{Total Assets} = 900 + 1100 + 150000 + 8000 = 160000 \][/tex]

2. Sum of Liabilities:
- Credit Card: \[tex]$4,000 - Student Loan: \$[/tex]1,000
- Mortgage: \[tex]$100,000 - Car Loan: \$[/tex]5,000

The total value of Dante's liabilities is calculated as:
[tex]\[ \text{Total Liabilities} = 4000 + 1000 + 100000 + 5000 = 110000 \][/tex]

3. Difference between Assets and Liabilities:

To determine whether Dante has more assets or liabilities, we calculate the difference:
[tex]\[ \text{Difference} = \text{Total Assets} - \text{Total Liabilities} = 160000 - 110000 = 50000 \][/tex]

This means that Dante has \[tex]$50,000 more in assets than in liabilities. 4. Determine the correct statement: - Dante has \$[/tex]50,000 more in assets than in liabilities.
- Dante has \[tex]$50,000 more in liabilities than in assets. - Dante has \$[/tex]110,000 more in liabilities than in assets.
- Dante has \[tex]$160,000 more in assets than in liabilities. Based on the calculations, the correct statement is: \[ \text{Dante has \$[/tex]50,000 more in assets than in liabilities.}
\]

Therefore, the correct answer is:

He has \$50,000 more in assets than in liabilities.