Question

Income from Known Sources Car Indirect Methods of Income from Unknown Sources Net Worth Lifestyle Description Amount Asset Liability Sources Application Boat 25,000 Boat Loan 20,000 Boat Loan Payments 5,000 40,000 Car Loan 30,000 Car Loan Payments 2,000 Deposit to Bank Account 500,000 Dividends on Tax Return 5,000 Down Payment Boat 12,000 Down Payment Car 7,000 Down Payment Time Share 6,000 Down Payment Vacation Homes 15,000 275,000 Home Equity Loan 35,000 Home Equity Loan Payments 4,000 Interest on Tax Return 1,000 Mortgage 150,000 Mortgage Payments 3,000 Mutual Funds 20,000 Purchase Mutual Funds 20,000 Time Share 50,000 Vacation Homes 250,000 Wages on W-2 and Tax Return 75.000 Net Worth Estimated Net Cash Income Home

A. Use the above chart to estimate the assets, liabilities, sources, applications, income from known sources, estimated net worth and the estimated net cash income.

B. Given the income from known sources, estimate the income from unknown sources from the Lifestyle Approach.

Answer 1

A)Statement showing Assets , Liabilities , source , application , income from Known sources , Net worth And Net cash Income

Assets means Products which has value and we have ownership of it

Liabilties means Money which owe to be paid

Description	Amount	Net worth	net worth	lifestyle
		Assets	Liabilities	source	application	income from known sources
Boat		25000
Boat loan			20000
Boat loan payment					5000
Car		40000
Car loan			30000
car loan payment					2000
deposit to bank payment				500000
Dividends on Tax return				5000		5000
Down Payment BOat					12000
Down Payment Car					7000
Down Payment Time share					6000
Down Payment Vaccation Homes					15000
Home		275000
Home Equity Loan			35000
Home Equity loan Payment					4000
Interest on Tax return				1000		1000
Mortgage			150000
mortgage payment					3000
mutual fund		20000
Purchase Mutual fund					20000
Time share		50000
Vacation Homes		250000
Wages on W2 and Tax Return				75000		75000
Total		660000	235000	581000	74000	81000
Net worth#	Assets - Liabilties	425000
Net Cash Income ##	Sources - Application	507000

# Net worth = Assets - Liabilities

= 660000-235000

=425000

## Net CAsh Income = source - application

= 507000

B) Total Income = 581000 As derived from answer A and Income from Know sources =81000

Income from Unknown Sources = 581000- 81000

=500000

these 500000 are deposits from Bank which are Income from Unknown Source ,

Income from Known source Means Income Derived From Lawfull source as Interest , wages and dividend are coming from Taxable return and 500000 is not known where it been deposit in bank

so that why its income from unknown source