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Thursday, September 07, 2017 8:06:09 AM
A third graded would know that his (or her) parents owe $150,000 on the house and that they do not have $150,000 in the bank to pay off this mortgage (ie liability), but this third grader would also know that the parents make a mortgage payment (ie bill or installment payment) every month. The family is not insolvent or bankrupt as long as they make the payment every month.
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