1. During 2015, John Connors sold his personal car for $2500. He had purchased the car in 2011for $6000. In March 2015, he sold 500 shares of stock for $10,000. He had acquired the stock in December 2010 for $22,000. On January 11, 2015, he gave his nephew a truck that had been used solely in his business. The truck cost $9,000 in 2012. Depreciation totaling $6,500 had been previously deducted on the truck at the time of the gift. John also paid $17,100 in personal expenses in 2015. For 2015, John reported adjusted gross income of $19,000. The balances in his bank accounts were $1,500 at the end of 2014 and $18,900 at the end of 2015. Assuming John correctly reported his income for 2015, the net worth computation would show that:

1. He understated his income by $8,200
2. He understated his income by $11,300
3. He overstated his income by $9,400
4. He did not understate his income
5. None of the above