For Mike Szabo, the changes in net worth for the year ended December 31, 2012, follow:
| Realized increases in net worth: |
|
| Salary |
$60,000 |
| Dividend income |
2,500 |
| Interest income |
2,000 |
| Gain on sale of marketable securities |
500 |
| Realized decreases in net worth: |
|
| Income taxes |
20,000 |
| Interest expense |
6,000 |
| Personal expenditures |
29,000 |
| Unrealized increases in net worth: |
|
| Stock options |
3,000 |
| Land |
7,000 |
| Residence |
5,000 |
| Unrealized decreases in net worth: |
|
| Boat |
3,000 |
| Jewelry |
1,000 |
| Furnishings |
4,000 |
| Estimated income taxes on the differences between the estimated current values of assetsand the estimated current amounts of liabilities and their tax bases |
15,000 |
| Net worth at the beginning of year |
150,000 |
Required
a. Prepare a statement of changes in net worth for the year ended December 31, 2012.
b. Comment on the statement of changes in net worth.