For Bill and Linda,the Changes in Net Worth for the Year

question 23

Essay

For Bill and Linda,the changes in net worth for the year ended December 31,2012,are detailed as follows. $\begin{array}{llcc} \text { Realized increases in net worth: } & \\ \text { Salary } &\$40,000\\ \text { Interest income } &5,000\\\\ \text { Realized decreases in net worth:} &\\ \text { Income taxes} &10,000\\ \text { Interest expenses} &8,000\\ \text {Personal expenditures } &30,000 \\\\ \text { Unrealized increases in net worth: } &\\ \text { Marketable securities} &3,000\\ \text {Land } &4,000\\ \text { Residence } &2,000\\\\ \text { Unrealized decreases in net worth: } &\\ \text { Furnishings} & 2,000 \\ \text { Estimated income taxes on the differences between the estimated } &\\ \text {current amounts of liabilities and their tax bases } &8,000\\\\ \text {Net worth at the beginning of year } &80,000\\\end{array}$

Required:
Prepare a statement of changes in net worth for the year ended December 31,2012.

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Definitions:

Workplace Governance

The system of rules, practices, and processes by which a workplace is directed and controlled, encompassing the mechanisms through which the interests of various stakeholders are balanced.

Terms and Conditions

A set of regulations and guidelines which are agreed upon between parties, often used in contracts and agreements to define the rights, obligations, and limitations of each party.

Unionized Workers

Employees who are members of a labor union, which represents their interests in matters such as wages, working conditions, and benefits.

Employment Relationship

The legal and practical connection between an employer and employee, defining rights, responsibilities, and conditions of work.