Question
In: Accounting
Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to...
Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year at a discount. Levingston’s average gross profit percentage is 15 percent. This year Kevin purchased a 530 model and a new M3.
| Model | FMV | Dealer cost | Employee Price |
| 530 | $64,000 | $51,000 | $54,500 |
| M3 | $71,700 | $61,000 | $58,000 |
What amount must Kevin include in income?
Multiple Choice
a. $0.
b. $2,945.
c. $2,950.
d. $22,000.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
A manufacturing company allows employees to purchase, at cost, manufacturing materials such as metal and lumber,...
A manufacturing company allows employees to purchase, at cost,
manufacturing materials such as metal and lumber, for personal use.
To purchase materials for personal use, an employee must complete a
materials requisition form which then must be approved by the
employee's immediate supervisor. The assistant cost accountant then
charges the employee an amount based on the manufacturing company's
net purchase cost.
An employee, who happens to be the assistant cost accountant, is
in the process of replacing a deck on...
A manufacturing company allows employees to purchase, at cost, manufacturing materials such as metal and lumber,...
A manufacturing company allows employees to purchase, at cost,
manufacturing materials such as metal and lumber, for personal use.
To purchase materials for personal use, an employee must complete a
materials requisition form which then must be approved by the
employee's immediate supervisor. The assistant cost accountant then
charges the employee an amount based on the manufacturing company's
net purchase cost.
An employee, who happens to be the assistant cost accountant, is
in the process of replacing a deck on...
A manufacturing company allows employees to purchase, at cost, manufacturing materials such as metal and lumber,...
A manufacturing company allows employees to purchase, at cost,
manufacturing materials such as metal and lumber, for personal use.
To purchase materials for personal use, an employee must complete a
materials requisition form which then must be approved by the
employee's immediate supervisor. The assistant cost accountant then
charges the employee an amount based on the manufacturing company's
net purchase cost. An employee, who happens to be the assistant
cost accountant, is in the process of replacing a deck on...
Earnhart Manufacturing Company allows employees to purchase, at cost, manufacturing materials, such as metal and lumber,...
Earnhart Manufacturing Company allows employees to purchase, at
cost, manufacturing materials, such as metal and lumber, for
personal use. To purchase materials for personal use, an employee
must complete a materials requisition form, which must then be
approved by the employee’s immediate supervisor. Gretchen
MacCauley, an assistant cost accountant, charges the employee an
amount based on Earnhart’s net purchase cost.
Gretchen MacCauley is in the process of replacing a deck on her
home and has requisitioned lumber for personal use,...
Nottingham Manufacturing Company allows employees to purchase, at cost, manufacturing materials, such as metal and lumber...
Nottingham Manufacturing Company allows employees to purchase,
at cost, manufacturing materials, such as metal and lumber for
personal use. To purchase materials for personal use , an employee
must complete a materials requisition form, which must then be
approved by the employee's immediate supervisor. Gretchen
MacCauley, an assistant cost accountant, charges the employee an
amount based on Nottingham's net purchase cost.
Gretchen MacCauley is in the process of replacing a deck on her
home and has requisitioned lumber for personal...
you are the manager of a coffee shop and your employees have had poor attendance. You...
you are the manager of a coffee shop and your employees have had
poor attendance. You want to understand why so many employees are
missing work and find out how to improve employee
engagement. To do this you plan to conduct an employee
survey.
Compose a 10-question survey that you will distribute to your
employees. Your survey should include instructions on how to
complete the survey, and the survey’s purpose.
XYZ Corporation has a deferred compensation plan under which it allows certain employees to defer up...
XYZ Corporation has a deferred compensation plan under which it
allows certain employees to defer up to 40 percent of their salary
for five years. For purposes of this problem, ignore payroll taxes
in your computations
a. Assume XYZ has a marginal tax rate of 21
percent for the foreseeable future and earns an after-tax rate of
return of 12 percent on its assets. Joel Johnson, XYZ’s VP of
finance, is attempting to determine what amount of deferred
compensation XYZ...
XYZ Corporation has a deferred compensation plan under which it allows certain employees to defer up...
XYZ Corporation has a deferred compensation plan under which it
allows certain employees to defer up to 35 percent of their salary
for five years. (For purposes of this problem, ignore payroll taxes
in your computations.) PV Table (Round your PV factors to 5
decimal places. Round your intermediate calculations and final
answers to the nearest whole dollar amount.)
a. Assume XYZ has a marginal tax rate of 35
percent for the foreseeable future and earns an after-tax rate of...
XYZ Corporation has a deferred compensation plan under which it allows certain employees to defer up...
XYZ Corporation has a deferred compensation plan under which it
allows certain employees to defer up to 35 percent of their salary
for five years. (For purposes of this problem, ignore payroll taxes
in your computations.) PV Table (Round your PV factors to 5
decimal places. Round your intermediate calculations and final
answers to the nearest whole dollar amount.)
a. Assume XYZ has a marginal tax rate of 35
percent for the foreseeable future and earns an after-tax rate of...
XYZ Corporation has a deferred compensation plan under which it allows certain employees to defer up...
XYZ Corporation has a deferred compensation plan under which it
allows certain employees to defer up to 20 percent of their salary
for five years. For purposes of this problem, ignore payroll taxes
in your computations. (Use Table 1.) (Round your
intermediate calculations and final answers to the nearest whole
dollar amount.)
Problem 13-61 Part a
a. Assume XYZ has a marginal tax rate of 21
percent for the foreseeable future and earns an after-tax rate of
return of 13...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
- #include <iostream> #include "lib.hpp" using namespace std; int main() { // declare the bool bool...
- Why do we compare means instead of individual scores? for comparing average SAT test scores across...
- NPV Your division is considering two projects with the following cash flows (in millions): 0...
- The equivalent synchronous impedance of a 25kVA, 400V three-phase Y-connected synchronous generator is 0.05 + j1.6...
ADVERTISEMENT