18. Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is: a. $0. b. $600. c. $3,500. d. $4,100. e. None of a-d is correct
18. Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is: a. $0. b. $600. c. $3,500. d. $4,100. e. None of a-d is correct
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 56P: Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters,...
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Question
![18. Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for
$9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was
$12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office.
The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable
to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income
from the above is:
a. $0.
b. $600.
c. $3,500.
d. $4,100.
e. None of a-d is correct](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F49998b2f-dfc5-4ac0-8a68-76d26faacbac%2Fdc5cd543-da92-4826-b50b-717a8b69ae7a%2Faki4a5t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:18. Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for
$9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was
$12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office.
The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable
to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income
from the above is:
a. $0.
b. $600.
c. $3,500.
d. $4,100.
e. None of a-d is correct
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