Which statement is false?

An indirect method may be used when a taxpayer has inadequate books and

records.

An IRS agent may conduct a LEXIS search to determine if a person purchased

real estate during the year.

An indirect method may be appropriate when there is a significant increase

in year$-$to$-$year net worth.

A Cash $T$ is an analysis of all of the cash received by a person and all of the

cash spent by a person over a period of time.

None of the above is false.