Jones is suspected of carrying out a fraud while working for his employer. Jones has worked for the employer for several years. The fraud is suspected to have begun in 2013 and possibly continued in 2014. As part of the investigation, the following financial information has been collected concerning Jones. In 2012, Jones was able to document he had $800 cash on hand and $1725 in a checking account. He also had a student loan on which he owed $8000. In 2013, Jones paid off his student loan. He also purchased a new car for $22,000. During the same year he purchased a condominium priced at $128,000. He placed $38,000 down and financed the remainder with a non-interest mortgage of $90,000. In addition, Jones had documented expenses of $12,000 for 2013 and according to his W-2 earned $55,000 in net wages. He has a zero balance in his bank account at year-end, no cash on hand, and made no known mortgage payments. During 2014 Jones had no cash on hand but $5,000 in his banking account. He reduced his mortgage by $10,000 in payments and purchased a boat for $28,000. He had $14,000 in other known expenses and earned $58,000 in net wages. 1.What was Jones’ net worth in 2012? $2,525 $1,725 - $ 825 - $5,475 None of the above 2. What was the value of Jones’ assets in 2013? $75,000 $89,000 $150,000 $245,000 None of the above 3. In 2014, how much income did Jones have from unknown sources? $13,000 $18,000 $75,125 $153,250 None of the above
Jones is suspected of carrying out a fraud while working for his employer. Jones has worked for the employer for several years. The fraud is suspected to have begun in 2013 and possibly continued in 2014. As part of the investigation, the following financial information has been collected concerning Jones.
In 2012, Jones was able to document he had $800 cash on hand and $1725 in a checking account. He also had a student loan on which he owed $8000.
In 2013, Jones paid off his student loan. He also purchased a new car for $22,000. During the same year he purchased a condominium priced at $128,000. He placed $38,000 down and financed the remainder with a non-interest mortgage of $90,000. In addition, Jones had documented expenses of $12,000 for 2013 and according to his W-2 earned $55,000 in net wages. He has a zero balance in his bank account at year-end, no cash on hand, and made no known mortgage payments.
During 2014 Jones had no cash on hand but $5,000 in his banking account. He reduced his mortgage by $10,000 in payments and purchased a boat for $28,000. He had $14,000 in other known expenses and earned $58,000 in net wages.
1.What was Jones’ net worth in 2012?
|
$2,525 |
||
|
$1,725 |
||
|
- $ 825 |
||
|
- $5,475 |
||
|
None of the above |
2.
What was the value of Jones’ assets in 2013?
|
$75,000 |
||
|
$89,000 |
||
|
$150,000 |
||
|
$245,000 |
||
|
None of the above |
3.
In 2014, how much income did Jones have from unknown sources?
|
$13,000 |
||
|
$18,000 |
||
|
$75,125 |
||
|
$153,250 |
||
|
None of the above |
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
