Instructions 1. Analize the following information: Indirect methods of income from unknown sources Assume that the following information is derived from reliable sources: Net Worth Lifestyle Approach Income from Known Sources Description Amount Asset Liability Sources Application Boat 25,000 Boat Loan 20,000 Boat Loan Payments 5,000 Car 40,000 Car Loan 40,000 Car Loan Payments 2,000 Deposit to bank account 400,000 Dividends reported on Tax Retun 5,000 Down Payment Boat 12,000 Down payment Car 7,000 Down Payment Time share 6,000 Down Payment Vacation home 15,000 House 275,000 Home equity loan 35,000 Home Equity Loan Payments 4,000 Income on Tax Return 1,000 Mortgage 200,000 Mortgage payments 3,000 Mutual funds 20,000 Purchase Mutual Funds 20,000 Time share 50,000 Vacation homes 250,000 Wages on the w-2 and tax return 75,000 Net Worth Estimated Net Cash Income Estimated income from unknown sources Use the information in the table above to estimate assets, liabilities, sources, applications from known sources, estimated net worth, and estimated net cash income.
Instructions 1. Analize the following information: Indirect methods of income from unknown sources Assume that the following information is derived from reliable sources: Net Worth Lifestyle Approach Income from Known Sources Description Amount Asset Liability Sources Application Boat 25,000 Boat Loan 20,000 Boat Loan Payments 5,000 Car 40,000 Car Loan 40,000 Car Loan Payments 2,000 Deposit to bank account 400,000 Dividends reported on Tax Retun 5,000 Down Payment Boat 12,000 Down payment Car 7,000 Down Payment Time share 6,000 Down Payment Vacation home 15,000 House 275,000 Home equity loan 35,000 Home Equity Loan Payments 4,000 Income on Tax Return 1,000 Mortgage 200,000 Mortgage payments 3,000 Mutual funds 20,000 Purchase Mutual Funds 20,000 Time share 50,000 Vacation homes 250,000 Wages on the w-2 and tax return 75,000 Net Worth Estimated Net Cash Income Estimated income from unknown sources Use the information in the table above to estimate assets, liabilities, sources, applications from known sources, estimated net worth, and estimated net cash income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Evidence collection process in a fraud case
Instructions
1. Analize the following information:
|
Indirect methods of income from unknown sources Assume that the following information is derived from reliable sources: |
||||||
|---|---|---|---|---|---|---|
| Net Worth | Lifestyle Approach | Income from Known Sources | ||||
| Description | Amount | Asset | Liability | Sources | Application | |
| Boat | 25,000 | |||||
| Boat Loan | 20,000 | |||||
| Boat Loan Payments | 5,000 | |||||
| Car | 40,000 | |||||
| Car Loan | 40,000 | |||||
| Car Loan Payments | 2,000 | |||||
| Deposit to bank account | 400,000 | |||||
| Dividends reported on Tax Retun | 5,000 | |||||
| Down Payment Boat | 12,000 | |||||
| Down payment Car | 7,000 | |||||
| Down Payment Time share | 6,000 | |||||
| Down Payment Vacation home | 15,000 | |||||
| House | 275,000 | |||||
| Home equity loan | 35,000 | |||||
| Home Equity Loan Payments | 4,000 | |||||
| Income on Tax Return | 1,000 | |||||
| Mortgage | 200,000 | |||||
|
Mortgage payments |
3,000 | |||||
| Mutual funds | 20,000 | |||||
| Purchase Mutual Funds | 20,000 | |||||
| Time share | 50,000 | |||||
| Vacation homes | 250,000 | |||||
| Wages on the w-2 and tax return | 75,000 | |||||
| Net Worth | ||||||
|
Estimated Net Cash Income |
||||||
| Estimated income from unknown sources |
- Use the information in the table above to estimate assets, liabilities, sources, applications from known sources, estimated net worth, and estimated net cash income.
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