Let's analyze the given data from the table to determine the changes in assets and liabilities from 2005 to 2009.
First, let's calculate the total assets and liabilities for 2005 and 2009.
### Assets in 2005:
- Home: \[tex]$200,000
- Car: \$[/tex]25,000
Total assets in 2005 = \[tex]$200,000 + \$[/tex]25,000 = \[tex]$225,000
### Liabilities in 2005:
- Mortgage: \$[/tex]30,000
- Car loan: \[tex]$8,000
Total liabilities in 2005 = \$[/tex]30,000 + \[tex]$8,000 = \$[/tex]38,000
### Assets in 2009:
- Home: \[tex]$180,000
- Car: \$[/tex]18,000
- Boat: \[tex]$20,000
Total assets in 2009 = \$[/tex]180,000 + \[tex]$18,000 + \$[/tex]20,000 = \[tex]$218,000
### Liabilities in 2009:
- Home equity loan: \$[/tex]18,000
- Personal loan: \[tex]$5,000
Total liabilities in 2009 = \$[/tex]18,000 + \[tex]$5,000 = \$[/tex]23,000
Now, let's compare the total assets and liabilities between 2005 and 2009:
### Change in Assets:
- Total assets in 2005: \[tex]$225,000
- Total assets in 2009: \$[/tex]218,000
Assets change = \[tex]$218,000 - \$[/tex]225,000 = -\[tex]$7,000
### Change in Liabilities:
- Total liabilities in 2005: \$[/tex]38,000
- Total liabilities in 2009: \[tex]$23,000
Liabilities change = \$[/tex]23,000 - \[tex]$38,000 = -\$[/tex]15,000
We see that from 2005 to 2009:
- Assets decreased (by \[tex]$7,000)
- Liabilities decreased (by \$[/tex]15,000)
Thus, the correct statement is:
a. From 2005 to 2009, both assets and liabilities decreased.
Hence, the best answer from the choices provided is: A
