Question
Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles at a discount. Levingstons average gross profit
Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles at a discount. Levingstons average gross profit percentage is 15%. This year Kevin purchased a 530 model and a new M3.
| Model | FMV | Dealer cost | Employee Price |
| 530 | $63,600 | $50,600 | $54,300 |
| M3 | $71,800 | $60,600 | $57,600 |
|
| |||
What amount must Kevin include in income?
$0.
$3,430.
$2,950.
$22,000.
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
