Answer :
Answer:
$45,000 equity in the house is the real asset, thus Julio is correct.
Explanation:
his asset = worth of the house - mortgage
= $220000 - $175000
= $45000
Answer:
Julio is right because the $45,000 equity in the house is the real asset.
Explanation:
The asset is a resource own by a person or organization that has an economic value. When you are determining the value of your asset, you need to consider if you have a loan on them, as this is a liability that has to be subtracted from the value to get the net worth. So, according to this, Julio is correct because his house has a value of $220,000 but he has a mortgage of $175,000 and when it is subtracted, his asset is $45,000.