Francis works for a local fly fishing shop. The shop allows employees to purchase two fly rods per year at a discount. This year, Francis purchased one rod. The rod normally retails for $300, was purchased for $225, was sold to Francis for $250, and the employer's average gross profit percentage is 30 percent. What amount of the discount must be included in Francis' income?

Question

Quizplus · Accepted Answer

Because the discount was less than the employer's average gross profit percentage, there is no income inclusion.

Francis Works for a Local Fly Fishing Shop