LO.2 Ted works for Sage Motors, an automobile dealership. All employees can buy a car at the

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LO.2 Ted works for Sage Motors, an automobile dealership. All employees can buy a car at the company’s cost plus 2%. The company does not charge employees the $175 transfer service fee that nonemployees must pay. Ted purchased an automobile for

$24,480 ($24,000 + $480). The company’s cost was $24,000. The price for a nonemployee would have been $27,775 ($27,600 + $175 transfer service fee). What is Ted’s gross income from the purchase of the automobile?

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South Western Federal Taxation 2011 Taxation Of Business Entities

ISBN: 9780538498616

14th Edition

Authors: James E. Smith, William A. Raabe, David M. Maloney

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