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 comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is: a. $0. b. $600. c. $3,500. d. $4,100. e. None of a-d is correct

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 comparable
to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income
from the above is:
a. $0.
b. $600.
c. $3,500.
d. $4,100.
e. None of a-d is correct
Transcribed Image Text: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 comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is: a. $0. b. $600. c. $3,500. d. $4,100. e. None of a-d is correct
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