A customer submitted a personal financial statement when requesting a new, unsecured personal loan

Finance Mar 03, 2022

A customer submitted a personal financial statement when requesting a new, unsecured personal loan. In addition to the information below, a lien search reports an unpaid federal tax lien of $20,000. Detail in the personal financial statement shows that the residence was purchased two months ago for $820,000. What would the customer’s adjusted net worth be?

A) $321,000
B) $301,000
C) $121,000
D) $101,000

Show your work on how to get to the answer which is $101,000

ASSETS		LIABILITIES
Cash	400	Mortgage Debt	600,000
Money Market Accounts	600	Notes & Bills Payable	100,000
Personal Residence	820,000	Total Liabilities	700,000
Personal Property	200,000
		Net Worth	321,000
TOTAL ASSETS	1,021,000	TOTAL LIAB & NET WORTH	1,021,000