A car dealership sold a vehicle to an employee for $18,000, even though the retail price was $25,000. The dealer's cost for the vehicle was $20,000. The employee discount is available to all employees. How much income should be recognized by the employee from this transaction?
A car dealership sold a vehicle to an employee for $18,000, even though the retail price was $25,000. The dealer's cost for the vehicle was $20,000. The employee discount is available to all employees. How much income should be recognized by the employee from this transaction?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 11DQ
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Transcribed Image Text:A car dealership sold a vehicle to an employee for $18,000, even though the
retail price was $25,000. The dealer's cost for the vehicle was $20,000. The
employee discount is available to all employees. How much income should be
recognized by the employee from this transaction?
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