Find the possible over/understatement of taxable income given the following: Taxable income per tax return $60,000 Increase in mortgage payable $150,000 Increase (purchase) in real estate $700,000 Increase in cash on hand $30,000 Decrease in bank balance $10,000 Gift received $15,000 Personal living expenses $25,000 Income taxes paid $17,000 Increase in accounts receivable $220,000 Decrease in securities $35,000 Tax exempt interest received $1,000 Gifts made (paid) $8,000 Increase in inventory $5,000 Itemized deductions $28,000 Inheritance received $9,000 Show your complete computations in a schedule showing sources and uses of funds as shown in Figure 6.3 in your textbook (Source and Application of Funds Format).
Find the possible over/understatement of taxable income given the following:
Taxable income per tax return $60,000
Increase in mortgage payable $150,000
Increase (purchase) in real estate $700,000
Increase in cash on hand $30,000
Decrease in bank balance $10,000
Gift received $15,000
Personal living expenses $25,000
Income taxes paid $17,000
Increase in accounts receivable $220,000
Decrease in securities $35,000
Tax exempt interest received $1,000
Gifts made (paid) $8,000
Increase in inventory $5,000
Itemized deductions $28,000
Inheritance received $9,000
Show your complete computations in a schedule showing sources and uses of funds as shown in Figure 6.3 in your textbook (Source and Application of Funds Format).
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