An electronics store sold a home theater system to an employee for $400, even though the retail price was $650. The gross profit percentage is 47%. Such discounts are available to all employees. How much income should be recognized by the employee from these transactions?

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 11DQ
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An electronics store sold a home theater system to an
employee for $400, even though the retail price was
$650. The gross profit percentage is 47%. Such
discounts are available to all employees. How much
income should be recognized by the employee from
these transactions?
Transcribed Image Text:An electronics store sold a home theater system to an employee for $400, even though the retail price was $650. The gross profit percentage is 47%. Such discounts are available to all employees. How much income should be recognized by the employee from these transactions?
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