A department store sold a stereo 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

Since the employee was able to purchase the stereo for only $300, which is below the retail price of $500, no income should be recognized by the employee from this transaction. Therefore, the correct choice is A) $0.

A Department Store Sold a Stereo to an Employee for $300,even