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Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year at a discount. Levingston's average gross profit percentage is 15%. This year Kevin purchased a 530 model and a new M3. Model Dealer cost Employee Price $54,025 $57,050 530 M3 FMV $63,050 $70,800 $50,050 $60,050 What amount must Kevin include in income?

Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year at a discount. Levingston's average gross profit percentage is 15%. This year Kevin purchased a 530 model and a new M3. Model Dealer cost Employee Price $54,025 $57,050 530 M3 FMV $63,050 $70,800 $50,050 $60,050 What amount must Kevin include in income?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year at a discount. Levingston's average gross profit percentage is 15%. This year Kevin purchased a 530 model and a new M3. Model Dealer cost Employee Price 530 M3 FMV $63,050 $70,800 $50,050 $60,050 What amount must Kevin include in income? $54,025 $57,050
Transcribed Image Text:Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year at a discount. Levingston's average gross profit percentage is 15%. This year Kevin purchased a 530 model and a new M3. Model Dealer cost Employee Price 530 M3 FMV $63,050 $70,800 $50,050 $60,050 What amount must Kevin include in income? $54,025 $57,050
Multiple Choice O O O O $0. $3,130. $2,950. $22,000.
Transcribed Image Text:Multiple Choice O O O O $0. $3,130. $2,950. $22,000.
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