An electronics store sold a home theater system to an employee for $300, even though the retail price was $500. The gross profit percentage is 40%. Such discounts are available to all employees. How much income should be recognized by the employee from these transactions?

Question

Quizplus · Accepted Answer

The discount is available to all employees, so it is not considered additional income. The employee pays $300, which is the cost to them, and no income is recognized from the discount.

An Electronics Store Sold a Home Theater System to an Employee