For Jim and Carl, the changes in net worth for the year ended December 31, 2001, follow:

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, 2001.

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