An electronics store sold a home theater system to an employee for $300, even though the retail price was $500. The gross profit percentage is 40%. Such discounts are available to all employees. How much income should be recognized by the employee from these transactions? A) $0 B) $100 C) $120 D) $200
An electronics store sold a home theater system to an employee for $300, even though the retail price was $500. The gross profit percentage is 40%. Such discounts are available to all employees. How much income should be recognized by the employee from these transactions? A) $0 B) $100 C) $120 D) $200
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 11DQ
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Question
How much income should be recognize by the employees from these transaction?
Transcribed Image Text:An electronics store sold a home theater system to
an employee for $300, even though the retail price
was $500. The gross profit percentage is 40%. Such
discounts are available to all employees. How much
income should be recognized by the employee from
these transactions?
A) $0
B) $100
C) $120
D) $200
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