Net worth is equal to assets minus liabilities. which event will have the greatest impact (positive or negative) on one's net worth? pay off $4,000 of school loans with cash go on a vacation that costs $3,500 buy a new car at market value for $15,000. car depreciates 20% upon transfer of ownership from the dealer to the buyer. finance a used car at market value for $16,000 inherit $2,000 from a relative

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?