Find the possible over/understatement of taxable income given the following:

Taxable income per tax return $60,000

Increase in mortgage payable $150,000

Increase (purchase) in real estate $700,000

Increase in cash on hand $30,000

Decrease in bank balance $10,000

Gift received $15,000

Personal living expenses $25,000

Income taxes paid $17,000

Increase in accounts receivable $220,000

Decrease in securities $35,000

Tax exempt interest received $1,000

Gifts made (paid) $8,000

Increase in inventory $5,000

Itemized deductions $28,000

Inheritance received $9,000

Show your complete computations in a schedule showing sources and uses of funds.