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Nikki works for the Shine Company, a retailer of upscale jewelry. How much taxable income does Nikki recognize under the following scenarios? (Leave no answer
Nikki works for the Shine Company, a retailer of upscale jewelry. How much taxable income does Nikki recognize under the following scenarios? (Leave no answer blank. Enter zero if applicable.)
A. Nikki buys a diamond ring from Shine Company for $16,900 (normal sales price, $21,220; Shine Company's gross profit percentage is 40%).
B. Nikki receives a 26 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 $925; discounted price $684.50)
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