Find the possible over/understatement of taxable income given the following: Taxable income per tax return $60,000 Increase
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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.
Expert Answer:
Related Book For 
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
Posted Date:
