Answered: Johnson received a new laptop from her… | bartleby

SWFT Comprehensive Vol 2020

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 30P

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Question

General accounting

Johnson received a new laptop from her employer for being the most
innovative employee of the year. The laptop cost the employer $1,800
because of a bulk purchase discount; it had a retail price of $2,400. In
addition, Johnson's employer gave her $800 to cover the taxes on the prize.
How much must Johnson include in her gross income?
a. $3,200
b. $2,600
c. $1,800
d. $2,400

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