s 38 through 42 are based on the following information: Stanley Moose Computation of Unreported Taxable income Assets 12-31-02 12-31-03 12-31-04 12-31-05 Cash on hand 1,000.00 1,000.00 1,000.00 1,000.00 Cash in banks 15,000.00 15,000.00 15,000.00 15,000.00 Checking accts 2,556.79 167.56 356.06 264.57 Bonds 91,897.58 122,770.04 123,001.00 132,601.17 Stocks & Notes receivable 2,983.72 1,983.72 983.72 13,487.50 Real Estate 10,386.92 10,386.92 10,386.92 61,886.92 Business Equip. 5,700.00 5,700.00 5,700.00 5,700.00 Autos 10,428.49 5,950.00 7,854.70 9,554.70 Total Assets 139,953.50 162,958.24 164,282.40 239,494.86 Liabilities Mortgages & Loans Payable 402.88 49.93 -0- 22,260.00 Taxes Payable 7,059.11 5,105.90 4,089.00 6,040.85 Total Liabilities 7,461.99 5,155.83 4,089.00 28,300.85 Net Worth 132,491.51 157,802.41 160,193.40 211,194.01 03 04 05 Beginning Net Worth 132,491.51 157,802.41 160,193.40 Stanley Moose living expenses were 12,646.61, 22,303.34, and 16,283.63 in 2003, 2004, and 2005, respectively. His tax deductions were 2,394.66, 2,461.99, and 3,738.75 for 2003, 2004, and 2005, respectively. His income tax exemptions were 2400, 2400, and 2400 for 2003, 2004, and 2005, respectively. Mr. Moose reported taxable incomes were 7,527.33, 18,765.49, and 9,610.33 for 2003, 2004, and 2005, respectively. 38. Stanley Moose corrected taxable income for 2003 per the net worth method is a. $33,162.85 b. $ 7,851.95 c. $ 7,527.33 d. none of the above 39. Stanley Moose unreported taxable income for 2003 is a. $ -0- b. $324.62 c. $25,635.52 D. It cannot be determined 40. Stanley Moose unreported taxable income for 2005 is a. $61,145.49 b. $51,000.61 c. It cannot be determined d. $51,535.16 Bonus Questions 41. Stanley Moose unreported taxable income for 2004 is a. $2,390.99 b. $18,765.49 c. -0- d. It cannot be determined e. None of the above 42. Stanley Moose change in net worth for 2005 is a. $2,390.00 b. $51,000.61 c. $75,212.46 d. None of the above