18. Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for$9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was$12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office.The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparableto that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross incomefrom the above is:a. $0.b. $600.c. $3,500.d. $4,100.e. None of a-d is correct

The objective of the question is to calculate Peggy's gross income from the transactions and…

Answered: 18. Peggy is an executive for the Tan…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 22MCQ

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Kate is an executive for the Cozy Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Cozy ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Cozy’s cost was $9,000. The company also paid for Kate’s parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Kate. However, the company does not pay other employees’ parking fees. Kate’s gross income from the above is: answer choices: $3,500. $4,100. $-0-. $900 $600.
Answer the question please.
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