Using the data given below, calculate the income from unknown sources for years 2 and 3 respectively.
|
Year 1 |
Year 2 |
Year 3 |
|
| Total Assets |
$252,000 |
$266,000 |
$309,000 |
| Total Liabilities |
244,000 |
134,000 |
64,000 |
| Known Income |
30,000 |
69,000 |
74,000 |
| Total Living Expenses |
17,500 |
10,800 |
8,800 |
| a. |
(i) 69,000; 74,000 |
|
| b. |
(i) 65,800; 47,800 |
|
| c. |
(i) 76,600; 56,600 |
|
| d. |
(i) -3,200; -26,200 |
Solution: Calculation of Income from Unknown sources
| Year 2 | Year 3 | |
| Increase in Assets (Current Year Figure - Previous Year Figure) | 14,000.00 | 43,000.00 |
| Increase in Liabilities (Current Year Figure - Previous Year Figure) | -1,10,000.00 | -70,000.00 |
| Net Increase in Assets = Increase in Assets - Increase in Assets | 1,24,000.00 | 1,13,000.00 |
| Net Income from known sources = Known Income - Total Living Expenses | 58,200.00 | 65,200.00 |
| Income From unknown sources = Net Increase in Assets - Net Income from known sources | 65,800.00 | 47,800.00 |
The Correct Option is Option b: (i)
$65,800;47,800
Using the data given below, calculate the income from unknown sources for years 2 and 3...