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Question - A credit card application found during the execution of a search warrant indicates that in 2017 and 2018, the subject owned two vehicles. Information from an interview with the subject indicates that both vehicles were sold in 2019. a) Chevy Truck (purchase price $32,000). b) Used Toyota Camry (purchase price $10,000). c) The application indicated that as of July 1, 2017, $24,600 was owed on the truck and $14,100 on a home equity loan, a portion of which was believed to have been used to purchase the car. Payments to principal were about $100 per month for each loan plus interest.
This is in regards to calculating net worth change using net worth method.
1. Is the two purchases considered an asset and the money owed & loan considered a liability?
2. Is the purchase price indicating the price that the person bought or sold the vehicle for?
3. They were sold in 2019. Do include the purchase prices in 2017 & 2018 section or include the purchase price in 2019 section?
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