Using data provided, does Elaine have any support for her concern ? Information for the prior five

Using data provided, does Elaine have any support for her concern ?

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Information for the prior five years is shown below: Year 2011 2012 2013 2014 2014 JOS Revenue $750,000 $875,000 $1,200,000 $1,700,000 $2,000,000 Cost of Goods Sold 240,000 262,500 324,000 442,000 400,000 Operating Expenses 375,000 410,500 506,250 690,500 625,000 Net Income before Taxes $135,000 $202,000 $369,750 $567,500 $975,000 Income Tax (34% tax rate) $45,900 $68,680 $125,715 $192,950 $331,500 QUESTIONS AND REQUIREMENTS 1. 2. What caused Elaine to question her client's tax return? Using data provided, does Elaine have any support for her concerns? Information for the prior five years is shown below: Year 2011 2012 2013 2014 2014 JOS Revenue $750,000 $875,000 $1,200,000 $1,700,000 $2,000,000 Cost of Goods Sold 240,000 262,500 324,000 442,000 400,000 Operating Expenses 375,000 410,500 506,250 690,500 625,000 Net Income before Taxes $135,000 $202,000 $369,750 $567,500 $975,000 Income Tax (34% tax rate) $45,900 $68,680 $125,715 $192,950 $331,500 QUESTIONS AND REQUIREMENTS 1. 2. What caused Elaine to question her client's tax return? Using data provided, does Elaine have any support for her concerns?