For Jim and Carrie, the changes in net worth for the year ended December 31, 2010, are as follows.

Realized increases in net worth:

Salary .....................$ 50,000

Interest income ....................6,000

Realized decreases in net worth:

Income taxes ...................15,000

Interest expense ...................3,000

Personal property taxes .................$ 1,000

Real estate taxes ..................1,500

Personal expenditures .................25,000

Unrealized increases in net worth:

Marketable securities .................2,000

Land .........................5,000

Residence .......................3,000

Stock options .....................4,000

Unrealized decreases in net worth:

Furnishings .....................3,000

Estimated income taxes on the differences between the

estimated current values of assets and the estimated

current amounts of liabilities and their tax bases .......12,000

Net worth at the beginning of year ...........130,000

Required

a. Prepare a statement of changes in net worth for the year ended December 31, 2010.

b. Comment on the statement of changes in net worth.