sarah and Gabe are considering the following transactions and have asked you to explain the impact of the transactions on their statement of financial position:

purchase a baseball card collection from Gabes uncle for 5,000 cash. Gabe feels the cards are worth more than 5,000. There has never been an official appraisal of the collection

secure a home-equity loan of 25k to have on hand for various projects and possibly to take a family vacation abroad.

trade the pick-up for a suv at a cost of 40k. they will use their pick-up truck as a teade-in as a down payment, the current vlaue is estimated at 7k, and borrow the balance at a projected rate of 5%

Also, they anticipate their respective 401k accounts increasing in value by 15% this year and have asked if this will have any impact on their financial statements