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1988 long-term capital loss on the sale of that share should be
reduced to $3.
2. Mr. Jacobsen’s Unreported Income
Mr. Jacobsen’s unreported gross receipts for 1987 and 1988
are as follows:
1986 1987 1988
Net worth computation:
Assets
Agent Fisher’s computations $330,569 $356,098 $441,985
Snowmobile 2,500 2,500 --
MMWC account 8,618 -- --
Joint money market account 800 -- --
Loan receivable 2,000 – –
Total assets 344,487 358,598 441,985
Liabilities 144,741 152,332 159,418
Net worth 199,746 206,266 282,567
Less prior year’s net worth 199,746 206,266
Increase (decrease) in net worth 6,520 76,301
Additions:
Nondeductible expenses
Agent Fisher’s computations 46,965 45,866
Cost of leather goods (3,770) (3,770)
Mobile phone (1,300) (763)
Itemized deductions expenditures 15,295 18,967
Subtractions:
Nonincome items (2,051) (59,504)
Adjusted gross income 61,659 77,097
Itemized deductions (13,130) (14,857)
Personal exemptions (3,800) (3,900)
Corrected taxable income 44,729 58,340
Taxable income reported (32,839) (35,626)
Gross receipts 11,890 22,714
Bureau of Labor statistics adjustment:
Agent Fisher’s computations 6,285 6,309
Cigarettes (266) (266)
Car repairs (1,640) (1,640)
Correct adjustment 4,379 4,403
Total unreported gross receipts 16,269 27,117
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