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A company is investigating a potential fraud committed by one of its employees. The company hired a forensic accountant to help with the investigation. The

A company is investigating a potential fraud committed by one of its employees. The company hired a forensic accountant to help with the investigation. The forensic accountant analyzed the employee's bank statements and identified several transactions that raised suspicion. The employee's salary was $60,000 per year, and they reported no other sources of income. The employee's bank balance at the beginning of the year was $2,000, and their bank balance at the end of the year was $10,000. However, the forensic accountant identified $20,000 in cash deposits that could not be accounted for by the employee's salary or any other legitimate source of income. Based on the analysis of the bank statements, the forensic accountant believes that the employee engaged in fraudulent activity.

a) What is the total income of the employee for the year, including the suspicious deposits?

b) What is the total taxable income of the employee for the year, assuming a tax rate of 30%?

c) If the company decides to pursue legal action against the employee for financial fraud, what is the maximum amount of damages the company could claim, assuming all of the suspicious deposits are deemed to be the result of fraud?

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