The current value of the residence is $550,000. The balance of the 30-year mortgage at 5.5% is $260,514. The land value is $150,000. The monthly payment is $1,703.37 and they have owned it for 8 years. They will not qualify for refinancing until Mr. Young has been employed for 12 months. Statement of Income and Expenses Alan and Angel Young Statement of Income and Expenses Expected (Approximate) For This Year (2020) Cash Inflows Alan's Salary Trust Income Cash Outflows Savings 401(k) Plan Totals $93,000 $30,000 Total Cash Inflows $123,000 $18,000 Total Savings $18,000 Taxes Social Security Taxes $7,115 Federal Withholding $10,384 State Withholding $3,715 Property Tax Residence $3,000 Total Taxes $24,214 Debt Payments (Principal & Interest) Principal Residence (P & I) $20,440 Auto Loan $0 Credit Cards $0 Total Debt Payments $20,440 Living Expenses Tuition to Little Darling School for the two children Utilities for Residence $15,000 $2,400 Entertainment/Vacation $7,500 Cable $1,200 Clothing $2,000 Auto Maintenance/Gas - Both Cars $3,000 Food $9,600 Total Living Expenses $40,700 Insurance Payments HO Insurance Residence $2,400 Health Insurance Premium $12,000 Automobile Insurance Premiums $1,800 Total Insurance Payments $16,200 Total Cash Outflows $119,554 Net Discretionary Cash Flows $3,446 Statement of Financial Position (Beginning of Year) Statement of Financial Position Alan and Angel Young Balance Sheet as of 1/1/2020 Current Assets Cash & Cash Equivalents CP Banking Account Total Current Assets Assets 1/4 Liabilities and Net Worth Current Liabilities $28,000 CP Principal Residence Mortgage Total Current Liabilities $6,269 $28,000 Investment Assets H Portfolio (Inherited) $200,000 Long-Term Liabilities CP Principal Residence Mortgage $254,245 W Brokerage Account $67,000 CP 401(k) Plan $32,000 Total Investment Assets $299,000 Total Long-Term Liabilities Total Liabilities $260,514 Personal Use Assets $260,514 CP Principal Residence $550,000 W Automobile # 1 $40,000 CP Automobile #2 $25,000 CP Furniture and Household $150,000 Total Personal Use Assets Total Assets 1. Assets are stated at fair market value. $765,000 $1,092,000 Total Net Worth $831,486 Total Liabilities & Net Worth $1,092,000 2. Liabilities are stated at principal only as of January 1, 2020 before January payments. 3. The land is valued at $150,000. 4. The trust assets are not included on the balance sheet. 2020 Tax Analysis - MFJ with 2 Children Income Income from Employment Income from Trust Total Income 401(k) Plan Contribution Itemized Deductions Mortgage Interest Property Taxes State Income Tax Charitable Giving Total Itemized Deductions Taxable Income Tax Liability* Credits (child credit) Tax Liability* +A Withholding Refund or (Due)