Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes: Description Specialized road bike Rocky Mountain mountain bike Trek road bike Yeti mountain bike Reta Price Coat $7,200 $4,900 5,200 3,750 3,300 2,760 3,300 2 900 Employee Price $5,040 4,160 2.310 2,640 Problem 12-48 Part a (Algo) a. What amount is Jarvie required to include in taxable income from these purchases? Amount to be included 12 12 Next > Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes: Description Specialized road bike Rocky Mountain mountain bike Trek road bike Yeti mountain bike Retail Price Cast $7,200 $4,900 5,200 3,750 3,300 2,760 3,300 2,900 Employee Price $5,040 4,160 2,310 2,640 Problem 12-48 Part b (Algo) b. What amount of deductions is Bad Dog allowed to claim from these transactions? Amount of deductions