Karl works at Moe's Grocery.This year Karl was paid $43,000 in salary but he was allowed to purchase his groceries at 10 percent below Moe's cost.This year Karl spent $3,600 to purchase groceries costing Moe $4,000 and worth $6,000.What amount must Karl include in his gross income?

Question

Quizplus · Accepted Answer

Karl's salary of $43,000 is taxable income and must be included in his gross income. The amount he saved on purchasing groceries is not taxable. Therefore, the total amount Karl must include in his gross income is $43,000.

Karl Works at Moe's Grocery