Sarah is an executive at Robin Yogurt.Because she loves the yogurt so much,in the current year she decides to buy a yogurt machine from Robin for $9,300.The machine cost the company $9,000 (the wholesale price),and it has a fair market value of $12,500 (price at which sold at retail).Only executives are permitted to buy yogurt machines at a discount.What is Sarah's adjusted basis for the yogurt machine and how much must she include in her gross income?
A)$9,300 basis,$3,500 gross income.
B)$9,300 basis,$3,200 gross income.
C)$12,500 basis,$3,500 gross income.
D)$12,500 basis,$3,200 gross income.
E)None of the above.

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The Answer of Sarah is an executive at Robin Yogurt.Because she loves the yogurt so much,in the current year she decides to buy a yogurt machine from Robin for $9,300.The machine cost the company $9,000 (the wholesale price),and it has a fair market value of $12,500 (price at which sold at retail).Only executives are permitted to buy yogurt machines at a discount.What is Sarah's adjusted basis for the yogurt machine and how much must she include in her gross income?
A)$9,300 basis,$3,500 gross income.
B)$9,300 basis,$3,200 gross income.
C)$12,500 basis,$3,500 gross income.
D)$12,500 basis,$3,200 gross income.
E)None of the above.

Sarah Is an Executive at Robin Yogurt