Sam and his wife Ann purchased a home in Lubbock, Texas in 1980 for $100,000. Their original home mortgage was for $90,000. The house has a current market value of $175,000 and a replacement value of $200,000. They still owe $55,000 on their home mortgage. Sam and Sally are now constructing their balance sheet. How should their home be reflected on their current personal balance sheet?
a.) $200,000 asset and $55,000 liability
b.) $200,000 asset and $90,000 liability
c.) $175,000 asset and $55,000 liability
d.) $175,000 asset and $90,000 liability
e.) $100,000 asset and $55,000 liability