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 arive at your family expenditure number Balance as of Interest Earned 2019 12/31/2018 $20,200.00 $0.00 Balance as of 12/31/2019 Bank CitiBank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank $7,892.00 $15,678.00 $0.00 $12,789.00 $0.00 $450.00 $256.00 $128.00 $2,562.00 $4,590.00 $3,679.00 $202.00 $154.00 Added to account Market Value as Account Number of 12/31/2018 Market Value as of during 2019 by Gibsons $10,251.40 $5,206.70 Investments: TD Ameritrade (trading portfolio) Edward Jones (Money Market Fund) 12/31/2019 $45,621.00 $15,250.00 974 $65,892.00 $38,754.00 2365 Property owned: Market Value as of 12/31/2018 $545,000.00 Market Value as of 12/31/2019 Rental Income 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 Original Cost 2019 (per month) $500,000.00 $130,000.00 $120,500.00 $80,000.00 $90,000.00 $550,000.00 800 700 750 650 $137,000.00 $149,000.00 $132,000.00 $120,000.00 $102,000.00 $122,500.00 $85,000.00 $92,000.00 $280,000.00 950 $0.00 $292,000.00 Market Value as of 12/31/2018 $0.00 $11,251.00 $31,875.00 $22,567.00 $2,500.00 $6,445.00 Market Value as of 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 12/31/2019 Original Cost $160,000.00 $160,000.00 $9,875.00 $25,897.00 $20,765.00 $2,056.00 $6,122.75 $31,565.00 $41,565.00 $52,000.00 $4,500.00 $7,200.00 Market Value as Purchased during Market Value as of 12/31/2019 other household items of 12/31/2018 Original Cost 2019 Artwork: Furniture: Electronics Antiques $58,280.00 $72,478.00 $6,993.60 $15,220.38 $11,828.26 $48,943.00 $75,880.56 $65,273.60 $87,698.38 $46,617.26 $61,833.00 $99,831.20 $50,847.60 $116,314.80 $34,789.00 $12,890.00 Market Value as of 12/31/2018 Market Value as of Contributions Retirement Assets: IRA Wells Fargo (Jack) IRA Wells Fargo (Hilda) 12/31/2019 Holder of account during 2019 Jack Gibson Hilda Gibson $552,263.04 $279,427.68 $26,000.00 $26,000.00 $467,092.00 $223,489.00 Balance as of Balance as of Payments made 2019 Credit Card Debt Account type 12/31/2018 $17,590.00 12/31/2019 American Express Blue $11,081.70 $3,736.80 $3,828.00 Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving $12,508.30 $14,719.20 Citibank $12,456.00 Discover Financial Services US Bank Card Bank Americard VISA Fifth Third Bankcard Capital One GMAC $2,900.00 $5,072.00 $3,825.85 $4,737.28 $6,162.25 $3,245.00 $5,419.15 $7,892.00 $3,245.00 $2,102.00 $0.00 $9,154.72 $3,082.75 $3,237.08 $2,590.00 $4,864.92 $3,410.00 Balance as of 12/31/2019 $360,289.20 Balance as of Personal Mortgage Debt Balance Address of property 12/31/2018 Teton Valley Bank 41 State Line Road, Driggs, 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 $380,141.70 GMAC Mortgage Bank Of America Wells Fargo $96,599.94 $69,107.71 $42,522.09 $18,258.45 $255,000.00 $100,809.64 $75,630.91 $48,011.39 $26,150.85 Jackson State Bank GMAC Mortgage $0.00 Balance as of 12/31/2019 $150,000.00 |Balance as of Other Liabilities Collateral 12/31/2018 Teton Valley Bank Chase Bank Jackson State Bank Cherokee Financing Speed boat Toyota SUV-2005 2006 Dodge Ram Truck Horse Trailer $0.00 $9,160.20 $18,360.12 $14,148.00 $27,484.72 $15,928.50 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 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) | Simple net worth 12/31/2019 Liabilities Assets Bank Credit Card Debt CitiBank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank 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) Personal Mortgage Debt Balance 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 Teton Valley Bank GMAC Mortgage Bank Of America Wells Fargo Jackson State Bank GMA Mortgage Other Liabilities Teton Valley Bank 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 Chase Bank Jackson State Bank Cherokee Financing Other household items Artwork: Furniture: Simple Net Worth Electronics Antiques 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 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 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 arive at your family expenditure number Balance as of Interest Earned 2019 12/31/2018 $20,200.00 $0.00 Balance as of 12/31/2019 Bank CitiBank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank $7,892.00 $15,678.00 $0.00 $12,789.00 $0.00 $450.00 $256.00 $128.00 $2,562.00 $4,590.00 $3,679.00 $202.00 $154.00 Added to account Market Value as Account Number of 12/31/2018 Market Value as of during 2019 by Gibsons $10,251.40 $5,206.70 Investments: TD Ameritrade (trading portfolio) Edward Jones (Money Market Fund) 12/31/2019 $45,621.00 $15,250.00 974 $65,892.00 $38,754.00 2365 Property owned: Market Value as of 12/31/2018 $545,000.00 Market Value as of 12/31/2019 Rental Income 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 Original Cost 2019 (per month) $500,000.00 $130,000.00 $120,500.00 $80,000.00 $90,000.00 $550,000.00 800 700 750 650 $137,000.00 $149,000.00 $132,000.00 $120,000.00 $102,000.00 $122,500.00 $85,000.00 $92,000.00 $280,000.00 950 $0.00 $292,000.00 Market Value as of 12/31/2018 $0.00 $11,251.00 $31,875.00 $22,567.00 $2,500.00 $6,445.00 Market Value as of 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 12/31/2019 Original Cost $160,000.00 $160,000.00 $9,875.00 $25,897.00 $20,765.00 $2,056.00 $6,122.75 $31,565.00 $41,565.00 $52,000.00 $4,500.00 $7,200.00 Market Value as Purchased during Market Value as of 12/31/2019 other household items of 12/31/2018 Original Cost 2019 Artwork: Furniture: Electronics Antiques $58,280.00 $72,478.00 $6,993.60 $15,220.38 $11,828.26 $48,943.00 $75,880.56 $65,273.60 $87,698.38 $46,617.26 $61,833.00 $99,831.20 $50,847.60 $116,314.80 $34,789.00 $12,890.00 Market Value as of 12/31/2018 Market Value as of Contributions Retirement Assets: IRA Wells Fargo (Jack) IRA Wells Fargo (Hilda) 12/31/2019 Holder of account during 2019 Jack Gibson Hilda Gibson $552,263.04 $279,427.68 $26,000.00 $26,000.00 $467,092.00 $223,489.00 Balance as of Balance as of Payments made 2019 Credit Card Debt Account type 12/31/2018 $17,590.00 12/31/2019 American Express Blue $11,081.70 $3,736.80 $3,828.00 Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving Credit Card-Revolving $12,508.30 $14,719.20 Citibank $12,456.00 Discover Financial Services US Bank Card Bank Americard VISA Fifth Third Bankcard Capital One GMAC $2,900.00 $5,072.00 $3,825.85 $4,737.28 $6,162.25 $3,245.00 $5,419.15 $7,892.00 $3,245.00 $2,102.00 $0.00 $9,154.72 $3,082.75 $3,237.08 $2,590.00 $4,864.92 $3,410.00 Balance as of 12/31/2019 $360,289.20 Balance as of Personal Mortgage Debt Balance Address of property 12/31/2018 Teton Valley Bank 41 State Line Road, Driggs, 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 $380,141.70 GMAC Mortgage Bank Of America Wells Fargo $96,599.94 $69,107.71 $42,522.09 $18,258.45 $255,000.00 $100,809.64 $75,630.91 $48,011.39 $26,150.85 Jackson State Bank GMAC Mortgage $0.00 Balance as of 12/31/2019 $150,000.00 |Balance as of Other Liabilities Collateral 12/31/2018 Teton Valley Bank Chase Bank Jackson State Bank Cherokee Financing Speed boat Toyota SUV-2005 2006 Dodge Ram Truck Horse Trailer $0.00 $9,160.20 $18,360.12 $14,148.00 $27,484.72 $15,928.50 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 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) | Simple net worth 12/31/2019 Liabilities Assets Bank Credit Card Debt CitiBank Wells Fargo Bank Chase Bank Bank of America Chicago City Bank 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) Personal Mortgage Debt Balance 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 Teton Valley Bank GMAC Mortgage Bank Of America Wells Fargo Jackson State Bank GMA Mortgage Other Liabilities Teton Valley Bank 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 Chase Bank Jackson State Bank Cherokee Financing Other household items Artwork: Furniture: Simple Net Worth Electronics Antiques 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 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