Question
Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year at a discount. Levingston's average
Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year at a discount. Levingston's average gross profit percentage is 15 percent. 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?
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Essentials Of Cost Accounting For Health Care Organizations
Authors: Steven Finkler, Judith Baker, David Ward
3rd Edition
0810235447, 9780763738136
