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3 October, 01:28

Using the net worth method, calculate an individual's income from unknown sources. The following information is available:Increase in net worth $100,000, Known income $80,000, Salary $60,000

1. $0

2. $10,000

3. $20,000

4. $40,000

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Answers (1)
  1. 3 October, 01:34
    0
    3. $20,000

    Explanation:

    Given,

    Net worth increase = $100,000,

    Since, Net worth increase + living expenses = income,

    If there are no living expenses,

    Net worth increase = income

    Thus, income = $100,000,

    Now, income = income from unknown sources + income from known sources,

    We have, income from known sources = $80,000,

    By substituting the values,

    $100,000 = income from unknown sources + $80,000,

    ⇒ Income from unknown sources = $100,000 - $80,000 = $20,000

    Hence, option 3 is correct.
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