Solution-What amount is Jarvie required to include in

What amount is Jarvie required to include in taxable income

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Question - Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes:

Description	Retail Price	Cost	Employee Price
Specialized road bike	$4100	$2800	$2870
Rocky mountain bike	$7,700	$5,900	$6,160
Trek road bike	$3,600	$3,060	$2,520
Yeti mountain bike	$4,400	$3,480	$3,520

Required - What amount is Jarvie required to include in taxable income from these purchases?

Reference no: EM132956501

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What amount is Jarvie required to include in taxable income : Bad Dog has an average gross profit percentage on bicycles of 25 percent. What amount is Jarvie required to include in taxable income

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What amount is Jarvie required to include in taxable income

Reference no: EM132956501

Reference no: EM132956501

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