Given the following information, determine whether illegal income is likely, if so, determine the amounts of unknown income.

year 1 year 2 year 3

home 220,000 220,000 220,000

car 25,000 25,000 50,000

investments 40,000 50,000 65,000

bank account 3,000 7,000 10,000

total assets 288,000 302,000 345,000

home loan 200,000 150,000 100,000

auto loan 20,000 0 0

student loan 60,000 20,000 0

total liabilities 280,000 170,000 100,000

salary 95,000 105,000

investments 4,000 5,000

inheritance 6,000 0

total income 105,000 110,000

homeloan 13,200 13,200

auto loan 9,600 9,600

other living 20,000 22,000

wedding 4,000 0

total expenses 46,800 44,800

P11.2a (lo 2, 4) fechter corporation had the following stockholders’ equity accounts on january 1, 2020: common stock ($5 par) $500,000, paid-in capital in excess of par—common stock $200,000, and retained earnings $100,000. in 2020, the company had the following treasury stock transactions. journalize and post treasury stock transactions, and prepare stockholders’ equity section. mar. 1 purchased 5,000 shares at $8 per share. june 1 sold 1,000 shares at $12 per share. sept. 1 sold 2,000 shares at $10 per share. dec. 1 sold 1,000 shares at $7 per share. fechter corporation uses the cost method of accounting for treasury stock. in 2020, the company reported net income of $30,000. instructions a. journalize the treasury stock transactions, and prepare the closing entry at december 31, 2020, for net income. b. open accounts for (1) paid-in capital from treasury stock, (2) treasury stock, and (3) retained earnings. (post to t-accounts.) c. prepare the stockholders’ equity section for fechter corporation at december 31, 2020.