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Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year at a discount. Levingstons average
Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year 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 | $63,800 | $50,800 | $54,400 |
M3 | $71,000 | $60,800 | $57,800 |
|
What amount must Kevin include in income?
Multiple Choice
$2,950.
$2,550.
$22,000.
$0.
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