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 Cost $7,200 $5,300 $5,040 Employee Price 5,700 4,400 4,560 2,500 2,250 1,750 5,700 4,650 4,560 a. What amount is Jarvie required to include in taxable income from these purchases?