Question
Janet went shopping for a new automobile. She found one that met her needs and agreed to purchase it for $33,000. She had shopped around
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Janet went shopping for a new automobile. She found one that met her needs and agreed to purchase it for $33,000. She had shopped around and concluded that she could not get a purchase price of less than $33,000 from any other dealer in town. She then negotiated a trade in credit of $3,200 for her old automobile (Kelly Blue Book value of this old automobile was $1,700 at the time of the trade in). She also used a $2,000 credit from a coupon printed in a local newspaper to reduce the purchase price by an additional $2,000. She paid the dealer $27,800 to conclude the deal. After she had paid for the automobile, the dealer called to notify Janet that she was entitled to a manufacturers rebate of $1,800. The next week she received a $1,800 check from the manufacturer. How much should Janet include in her gross income as a result of the various components of this transaction?
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