Nikki works for the Shine Company, a retailer of upscale jewelry. How much taxable income does Nikki recognize under the following scenarios?

a.	Nikki buys a diamond ring from Shine Company for $13,400 (normal sales price, $17,790; Shine Companys gross profit percentage is 40%).

b.	Nikki receives a 35 percent discount on jewelry restoration services offered by Shine Company. This year, Nikki had Shine Company repair a set of antique earrings (normal repair cost $890; discounted price $578.50). (Round your answer to 2 decimal places.)