Jack and Hilda Gibson, Net Worth Analysis Assignment Assignment: Jack Gibson does bookkeeping for several companies in Driggs, Idaho. He keeps the books for a plumbing contractor, a local hardware and building supply store as well as several well-to-do clients such as the local doctors and owners of organic food store. 1. What is Jack and Gilda's Simple Net worth as of 12/31/2019? (Jack's income: $190,000; Gilda's income is $75,000) 2. Use the templates provided and the indirect method of net worth analysis to determe whether Jack and Gilda have received money from illegitimate sources, if so, how much? 3. How might they defend themselves from a charge of having money from illegitimate sources? 4. Explain how you arrive at your family expenditure number Bank CitiBank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank Balance as of Balance as of Interest Earned 2019 12/31/2018 12/31/2019 $450.00 $20,200.00 $7,892.00 $256.001 $0.00 $15,678.00 $128.00 $2,562.00 $0.00 $202001 $4,590.00 $12,789.00 $154.00 $3,679.00 $0.00 Investments: TD Ameritrade (trading portfolio) Edward Jones (Money Market Fund) Added to account Market Value as Market value as of during 2019 by Account Number of 12/31/2018 12/31/2019 Gibsons 974 $45,621.00 $65,892.00 $10,251.40 2365 $15,250.00 $38,754.00 $5,206.70 Property owned: Rental Income 2019 (per month) Address 41 State Line Road, Driggs, ID 256 Northshore Drive #4500, Chicago, IL 385 Little Ave., Driggs, ID (rental) 152 Barnes Street, Tetonia, ID (farm) 200 Valley View Road, Victor, ID (farm) 300 Three Peaks Rd, Driees, ID (rental) Purchased and rented Oct 1, 2019 Market Value as Market Value as of Original Cost of 12/31/2018 12/31/2019 $500,000.00 $545,000.00 $550,000.00 $130,000.00 $137,000.00 $149,000.00 $120,500.00 $122,500.00 $132,000.00 $80,000.00 $85,000.00 $120,000.00 $90,000.00 $92,000.00 $102,000.00 800 700 750 $280,000.00 $0.00 $292,000.00 Other Assets: Speed Boat (purchased in 2019) Toyota SUV-2005 Chevy Suburban SUV purchased in 2018 2013 Dodge Ram Truck Jeep 1994 Harley Davidson Motorcycle Market Value as Market Value as of Original Cost of 12/31/2018 12/31/2019 $160,000.00 $0.00 $160,000.00 $31,565.00 $11,251.00 $9,875.00 $41,565.00 $31,875.00 $25,897.00 $52,000.00 $22,567.00 $20,765.00 $4,500.00 $2,500.00 $2,056.00 $7,200.00 $6,445.00 $6,122.75 Other household items Artwork: Furniture: Electronics Antiques Market Value as Market Value as of Purchased during Original Cost of 12/31/2018 12/31/2019 2019 $58,280.00 $65,273.60 $75,880.56 $6,993.60 $72,478.00 $87,698.38 $99,831.20 $15,220.38 $34,789.00 $46,617.26 $50,847.60 $11,828.26 $12,890.00 $61,833.00 $116,314.80 $48,943.00 Retirement Assets: IRA Wells Fargo (Jack) IRA Wells Fargo (Hilda) Holder of account Jack Gibson Hilda Gibson Market Value as Market Value as of of 12/31/2018 12/31/2019 $467,092.00 $552,263.04 $223,489.00 $279,427.68 Contributions during 2019 $26,000.00 $26,000.00 Credit Card Debt American Express Blue Citibank Discover Financial Services US Bank Card Bank Americard VISA Fifth Third Bankcard Capital One GMAC Account type Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Balance as of Balance as of Payments made 12/31/2018 12/31/2019 2019 $17,590.00 $11,081.701 $12,508.30 $12,456.00 $3,736.80 $14,719.20 $2,900.00 $3,828.00 $5,072.00 $3,245.00 $5,419.15 $3,825.85 $7,892.00 $9,154.72 $4,737.28 $3,245.00 $3,082.75 $6,162.25 $2,102.00 $3,237.08 $4,864.921 $0.00 $2,590.00 $3,410.00 Personal Mortgage Debt Balance Teton Valley Bank Balance as of Balance as of 12/31/2018 12/31/2019 $380,141.70 $360,289.20 GMAC Mortgage Bank of America Wells Fargo Jackson State Bank GMAC Mortgage Address of property 41 State Line Road, Driges, ID 256 Northshore Drive #4500, Chicago, IL 385 Little Ave., Driggs, ID 152 Barnes Street, Tetonia, ID 200 Valley View Road, Victor, ID 300 Three Peaks Rd, Driggs, ID $100,809.641 $75,630.91 $48,011.39 $26,150.85 $0.00 $96,599.94 $69,107.71 $42,522.09 $18,258.45 $255,000.00 Other Liabilities Teton Valley Bank Chase Bank Jackson State Bank Cherokee Financing Collateral Speed boat Toyota SUV-2005 2006 Dodge Ram Truck Horse Trailer Balance as of Balance as of 12/31/2018 12/31/2019 $0.00 $150,000.00 $14,148.00 $9,160.20 $27,484.72 $18,360.12 $15,928.50 0 For family living expense, might look at the US Bureau of Labor Statistics, Consumer Expenditure Surveys, Current Expenditure Tables, Income before taxes, find the category in which they fall and compute the percent of spending for that category, apply it to Gibson's Income 12/31/2019 L Simple net worth Assets Bank Citibank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank Liabilities Credit Card Debt American Express Blue Citibank Discover Financial Services US Bank Card Bank Americard VISA Fifth Third Bankcard Capital One GMAC Investments: TD Ameritrade (trading portfolio) Edward Jones (Money Market Fund) Property owned: Address 41 State Line Road, Driggs, ID 256 Northshore Drive #4500, Chicago, IL 385 Little Ave., Driggs, ID (rental) 152 Barnes Street, Tetonia, ID (farm) 200 Valley View Road, Victor, ID (farm) 300 Three Peaks Rd, Driggs, ID (rental) Purchased and rented Oct 1, 2019 Personal Mortgage Debt Balance Teton Valley Bank GMAC Mortgage Bank Of America Wells Fargo Jackson State Bank GMAC Mortgage Other Liabilities Teton Valley Bank Chase Bank Jackson State Bank Cherokee Financing Other Assets: Speed Boat (purchased in 2019) Toyota SUV-2005 Chevy Suburban SUV purchased in 2018 2013 Dodge Ram Truck Jeep 1994 Harley Davidson Motorcycle other household items Artwork: Furniture: Electronics Antiques Simple Net Worth Retirement Assets: IRA Wells Fargo (Jack) IRA Wells Fargo (Hilda) Liabilities Credit Card Debt American Express Blue Citibank Discover Financial Services US Bank Card Bank Americard VISA Fifth Third Bankcard Capital One GMAC II Mortgage Debt Teton Valley Bank GMAC Mortgage Bank of America Wells Fargo Jackson State Bank GMAC Mortgage Other Liabilities Teton Valley Bank Chase Bank Jackson State Bank Cherokee Financing Change in Net Worth Bank CitiBank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank Investments: TD Ameritrade (trading portfolio) Edward Jones (Money Market Fund) Property owned: 41 State Line Road, Driggs, ID 256 Northshore Drive #4500, Chicago, IL 385 Little Ave., Driggs, ID (rental) 152 Barnes Street, Tetonia, ID (farm) 200 Valley View Road, Victor, ID (farm) 300 Three Peaks Rd, Driggs, ID (rental) Purchased and rented Oct 1, 2019 Other Assets: Speed Boat Toyota SUV-2005 Chevy Suburban SUV purchased in 2014 2013 Dodge Ram Truck Jeep 1994 Harley Davidson Motorcycle Other household items Artwork: Furniture: Electronics Antiques Retirement Assets: IRA Wells Fargo (Jack) IRA Wells Fargo (Hilda) Jack and Hilda Gibson, Net Worth Analysis Assignment Assignment: Jack Gibson does bookkeeping for several companies in Driggs, Idaho. He keeps the books for a plumbing contractor, a local hardware and building supply store as well as several well-to-do clients such as the local doctors and owners of organic food store. 1. What is Jack and Gilda's Simple Net worth as of 12/31/2019? (Jack's income: $190,000; Gilda's income is $75,000) 2. Use the templates provided and the indirect method of net worth analysis to determe whether Jack and Gilda have received money from illegitimate sources, if so, how much? 3. How might they defend themselves from a charge of having money from illegitimate sources? 4. Explain how you arrive at your family expenditure number Bank CitiBank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank Balance as of Balance as of Interest Earned 2019 12/31/2018 12/31/2019 $450.00 $20,200.00 $7,892.00 $256.001 $0.00 $15,678.00 $128.00 $2,562.00 $0.00 $202001 $4,590.00 $12,789.00 $154.00 $3,679.00 $0.00 Investments: TD Ameritrade (trading portfolio) Edward Jones (Money Market Fund) Added to account Market Value as Market value as of during 2019 by Account Number of 12/31/2018 12/31/2019 Gibsons 974 $45,621.00 $65,892.00 $10,251.40 2365 $15,250.00 $38,754.00 $5,206.70 Property owned: Rental Income 2019 (per month) Address 41 State Line Road, Driggs, ID 256 Northshore Drive #4500, Chicago, IL 385 Little Ave., Driggs, ID (rental) 152 Barnes Street, Tetonia, ID (farm) 200 Valley View Road, Victor, ID (farm) 300 Three Peaks Rd, Driees, ID (rental) Purchased and rented Oct 1, 2019 Market Value as Market Value as of Original Cost of 12/31/2018 12/31/2019 $500,000.00 $545,000.00 $550,000.00 $130,000.00 $137,000.00 $149,000.00 $120,500.00 $122,500.00 $132,000.00 $80,000.00 $85,000.00 $120,000.00 $90,000.00 $92,000.00 $102,000.00 800 700 750 $280,000.00 $0.00 $292,000.00 Other Assets: Speed Boat (purchased in 2019) Toyota SUV-2005 Chevy Suburban SUV purchased in 2018 2013 Dodge Ram Truck Jeep 1994 Harley Davidson Motorcycle Market Value as Market Value as of Original Cost of 12/31/2018 12/31/2019 $160,000.00 $0.00 $160,000.00 $31,565.00 $11,251.00 $9,875.00 $41,565.00 $31,875.00 $25,897.00 $52,000.00 $22,567.00 $20,765.00 $4,500.00 $2,500.00 $2,056.00 $7,200.00 $6,445.00 $6,122.75 Other household items Artwork: Furniture: Electronics Antiques Market Value as Market Value as of Purchased during Original Cost of 12/31/2018 12/31/2019 2019 $58,280.00 $65,273.60 $75,880.56 $6,993.60 $72,478.00 $87,698.38 $99,831.20 $15,220.38 $34,789.00 $46,617.26 $50,847.60 $11,828.26 $12,890.00 $61,833.00 $116,314.80 $48,943.00 Retirement Assets: IRA Wells Fargo (Jack) IRA Wells Fargo (Hilda) Holder of account Jack Gibson Hilda Gibson Market Value as Market Value as of of 12/31/2018 12/31/2019 $467,092.00 $552,263.04 $223,489.00 $279,427.68 Contributions during 2019 $26,000.00 $26,000.00 Credit Card Debt American Express Blue Citibank Discover Financial Services US Bank Card Bank Americard VISA Fifth Third Bankcard Capital One GMAC Account type Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Balance as of Balance as of Payments made 12/31/2018 12/31/2019 2019 $17,590.00 $11,081.701 $12,508.30 $12,456.00 $3,736.80 $14,719.20 $2,900.00 $3,828.00 $5,072.00 $3,245.00 $5,419.15 $3,825.85 $7,892.00 $9,154.72 $4,737.28 $3,245.00 $3,082.75 $6,162.25 $2,102.00 $3,237.08 $4,864.921 $0.00 $2,590.00 $3,410.00 Personal Mortgage Debt Balance Teton Valley Bank Balance as of Balance as of 12/31/2018 12/31/2019 $380,141.70 $360,289.20 GMAC Mortgage Bank of America Wells Fargo Jackson State Bank GMAC Mortgage Address of property 41 State Line Road, Driges, ID 256 Northshore Drive #4500, Chicago, IL 385 Little Ave., Driggs, ID 152 Barnes Street, Tetonia, ID 200 Valley View Road, Victor, ID 300 Three Peaks Rd, Driggs, ID $100,809.641 $75,630.91 $48,011.39 $26,150.85 $0.00 $96,599.94 $69,107.71 $42,522.09 $18,258.45 $255,000.00 Other Liabilities Teton Valley Bank Chase Bank Jackson State Bank Cherokee Financing Collateral Speed boat Toyota SUV-2005 2006 Dodge Ram Truck Horse Trailer Balance as of Balance as of 12/31/2018 12/31/2019 $0.00 $150,000.00 $14,148.00 $9,160.20 $27,484.72 $18,360.12 $15,928.50 0 For family living expense, might look at the US Bureau of Labor Statistics, Consumer Expenditure Surveys, Current Expenditure Tables, Income before taxes, find the category in which they fall and compute the percent of spending for that category, apply it to Gibson's Income 12/31/2019 L Simple net worth Assets Bank Citibank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank Liabilities Credit Card Debt American Express Blue Citibank Discover Financial Services US Bank Card Bank Americard VISA Fifth Third Bankcard Capital One GMAC Investments: TD Ameritrade (trading portfolio) Edward Jones (Money Market Fund) Property owned: Address 41 State Line Road, Driggs, ID 256 Northshore Drive #4500, Chicago, IL 385 Little Ave., Driggs, ID (rental) 152 Barnes Street, Tetonia, ID (farm) 200 Valley View Road, Victor, ID (farm) 300 Three Peaks Rd, Driggs, ID (rental) Purchased and rented Oct 1, 2019 Personal Mortgage Debt Balance Teton Valley Bank GMAC Mortgage Bank Of America Wells Fargo Jackson State Bank GMAC Mortgage Other Liabilities Teton Valley Bank Chase Bank Jackson State Bank Cherokee Financing Other Assets: Speed Boat (purchased in 2019) Toyota SUV-2005 Chevy Suburban SUV purchased in 2018 2013 Dodge Ram Truck Jeep 1994 Harley Davidson Motorcycle other household items Artwork: Furniture: Electronics Antiques Simple Net Worth Retirement Assets: IRA Wells Fargo (Jack) IRA Wells Fargo (Hilda) Liabilities Credit Card Debt American Express Blue Citibank Discover Financial Services US Bank Card Bank Americard VISA Fifth Third Bankcard Capital One GMAC II Mortgage Debt Teton Valley Bank GMAC Mortgage Bank of America Wells Fargo Jackson State Bank GMAC Mortgage Other Liabilities Teton Valley Bank Chase Bank Jackson State Bank Cherokee Financing Change in Net Worth Bank CitiBank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank Investments: TD Ameritrade (trading portfolio) Edward Jones (Money Market Fund) Property owned: 41 State Line Road, Driggs, ID 256 Northshore Drive #4500, Chicago, IL 385 Little Ave., Driggs, ID (rental) 152 Barnes Street, Tetonia, ID (farm) 200 Valley View Road, Victor, ID (farm) 300 Three Peaks Rd, Driggs, ID (rental) Purchased and rented Oct 1, 2019 Other Assets: Speed Boat Toyota SUV-2005 Chevy Suburban SUV purchased in 2014 2013 Dodge Ram Truck Jeep 1994 Harley Davidson Motorcycle Other household items Artwork: Furniture: Electronics Antiques Retirement Assets: IRA Wells Fargo (Jack) IRA Wells Fargo (Hilda)