You have been retained by the law firm of Thompson Associates. Thompson Associates have been retained by Jones Manufacturing Company in a case involving a suspected kickback by a purchasing employee James Conroy. Conroy is suspected of accepting kickbacks from an employee of Harrison Sheet Metal Company. Conroy has denied the charges. Thompson Associates filed a civil action and subpoenaed Conroy's books and records, including bank statements. The following information for the year 2016 was obtained: Beginning bank balance January 1, 2016 $3, 400 Ending bank balance December 31, 2016 $2,000 Gross salary $3, 700 per month, with a net of $3,000 House payment $1, 400 per month Car payment $2, 441 per month on a new Cadillac Paid a total of $8, 450 toward a new Maxima (including a $5,000 down payment). Paid $5, 500 on A V equipment. Household living expenses (food etc.) estimated at $900 per month (food etc.) Required: Calculate the understatement of income for the year 20156 if any, using the Expenditure Method. Explain your conclusion in one or two sentences