Leonard and Michelle have asked you to prepare their statement of changes in net worth for the year ended August 31, 20X3. They have prepared the following comparative statement of financial condition based on estimated current values as required by ASC 274: LEONARD AND MICHELLE Statement of Financial Condition August 31, 20X3 and 20X2 20X3 20X2 Assets Cash $ 4,400 $ 7,500 Marketable securities 5,700 17,900 Residence 96,400 89,100 Personal effects 10,800 10,800 Cash surrender value of life insurance 4,000 6,400 Investment in farm business: Farmland $ 42,800 $ 32,900 Farm equipment 24,000 9,800 Note payable on farm equipment (10,800 ) 0 Net investment in farm 56,000 42,700 Total assets $ 177,300 $ 174,400 Liabilities and Net Worth Credit card $ 3,800 $ 2,300 Income taxes payable 12,200 13,200 Mortgage payable on residence 71,800 77,600 Estimated income taxes on the difference between the estimated current values of assets and liabilities and their tax bases 20,500 17,900 Net worth 69,000 63,400 Total liabilities and net worth $ 177,300 $ 174,400 Additional Information Leonard and Michelles total salaries during the fiscal year ended August 31, 20X3, were $45,900; farm income was $7,500; personal expenditures were $44,300; and interest and dividends received were $2,200. Marketable securities purchased in 20X1 at a cost of $11,500 and with a current market value of $11,500 on August 31, 20X2, were sold on March 1, 20X3, for $10,000. No additional marketable securities were purchased or sold during the fiscal year. The values of the residence and farmland are based on year-end appraisals. On August 31, 20X3, Leonard purchased a used combine at a cost of $15,500. He made a $4,800 down payment and signed a five-year, 10 percent note payable for the $10,700 balance owed. No other farm equipment was purchased or sold during the fiscal year. The cash surrender value of the life insurance policy increased during the fiscal year by $2,400. However, Leonard borrowed $4,000 against the policy on September 1, 20X2. Interest at 15 percent for the first year of this loan was paid when due on August 31, 20X3. Federal income taxes of $13,200 were paid during the 20X3 fiscal year. Mortgage payments made during the year totaled $9,800, which included payments of principal and interest. Required: Using the comparative statement of financial condition and additional information provided, prepare the statement of changes in net worth for the year ended August 31, 20X3.