Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is: a. $4,100. b. $3,500. c. $600. O d. $-0-.
Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is: a. $4,100. b. $3,500. c. $600. O d. $-0-.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 51P
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![Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the
company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of
the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a
garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a
discounted price comparable to that charged to Peggy. However, the company does not pay other employees'
parking fees. Peggy's gross income from the above is:
a. $4,100.
b. $3,500.
O c. $600.
O d. $-0-.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F506c3f2a-e371-4ce1-aa8d-cf5301d8204a%2Fecce7824-b2fb-4c6a-a5f2-5bd0c748e585%2F91tm7dq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the
company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of
the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a
garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a
discounted price comparable to that charged to Peggy. However, the company does not pay other employees'
parking fees. Peggy's gross income from the above is:
a. $4,100.
b. $3,500.
O c. $600.
O d. $-0-.
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