To determine the correct statement regarding the change in the Chang family's assets and liabilities from 2007 to 2008, we need to calculate the total assets and total liabilities for each year and compare them.
### Calculation of Assets in 2007:
The assets in 2007 include:
- Home: \[tex]$315,000
- Car: \$[/tex]10,000
- Savings: \[tex]$2,000
So, the total assets for 2007 are:
\[ \text{Assets}_{2007} = \$[/tex]315,000 + \[tex]$10,000 + \$[/tex]2,000 = \[tex]$327,000 \]
### Calculation of Liabilities in 2007:
The liabilities in 2007 include:
- Mortgage: \$[/tex]265,000
- Car Loan: \[tex]$5,000
So, the total liabilities for 2007 are:
\[ \text{Liabilities}_{2007} = \$[/tex]265,000 + \[tex]$5,000 = \$[/tex]270,000 \]
### Calculation of Assets in 2008:
The assets in 2008 include:
- Home: \[tex]$325,000
- Car: \$[/tex]6,000
- Savings: \[tex]$0
So, the total assets for 2008 are:
\[ \text{Assets}_{2008} = \$[/tex]325,000 + \[tex]$6,000 = \$[/tex]331,000 \]
### Calculation of Liabilities in 2008:
The liabilities in 2008 include:
- Mortgage: \[tex]$240,000
- Car Loan: \$[/tex]1,000
- Credit Card Debt: \[tex]$1,500
So, the total liabilities for 2008 are:
\[ \text{Liabilities}_{2008} = \$[/tex]240,000 + \[tex]$1,000 + \$[/tex]1,500 = \[tex]$242,500 \]
### Comparison:
- The assets in 2007 were \$[/tex]327,000 and in 2008 were \[tex]$331,000. This means:
\[ \text{Change in Assets} = \$[/tex]331,000 - \[tex]$327,000 = +\$[/tex]4,000 \]
Thus, the assets increased.
- The liabilities in 2007 were \[tex]$270,000 and in 2008 were \$[/tex]242,500. This means:
[tex]\[ \text{Change in Liabilities} = \$242,500 - \$270,000 = -\$27,500 \][/tex]
Thus, the liabilities decreased.
Given these findings:
- Assets increased from 2007 to 2008.
- Liabilities decreased from 2007 to 2008.
Therefore, the correct statement is:
d. From 2007 to 2008, assets increased and liabilities decreased.
