Personal Financial Statements - 20A

Question 1

How is Net Worth calculated on the Personal Financial Statements?

Answer 1

Assets (Est CV)
- Liabilities (Est CV)
- Est. Taxes
= Net Worth

Question 2

Personal Financial Statements include what?

Answer 2

1. Statement of Financial Position

2. Statement of Changes in Net Worth

Question 3

How do you figure the tax basis?

Answer 3

Take Estimated Asset CV - Estimated Liability CV = Estimated CV

Then take Estimated CV - Historical Value to get the increase in Net Worth and multiply that by the tax rate.