I need assistance with 2 problems:

Problem #1

In computing income under the net worth method, the following facts are found:

Total assets $1,600,000

Total liabilities $825,000

Nondeductible expense $120,000

Net worth at beginning of year $560,000

Adjusted Gross income is:

a. $170,000

b. $215,000

c. $290,000

d. $335,000

e. none of the above

_{Please show your calculation and explanation to your answer. Thank you!}

Problem #2

In the process of using the net worth method, you find that income of a person is $92,000 and overall expenses are $61,000. Calculated net worth is $611,000 and computed net worth is $430,000. An unexplained net worth income or (decrease) would be:

a. $31,000

b. $150,000

c. $181,000

d. $212,000

e. Another answer is correct

Please show your calculation and explanation--greatly appreciated! Thanks!