George Is Employed by the Quality Appliance Company

question 6

Essay

George is employed by the Quality Appliance Company. All the full time employees are allowed to purchase appliances at the company's cost plus 10%. The employee also is given, at no cost, a 1-year service contract on all the goods purchased from the company. George purchased a refrigerator for $500. The company's normal selling price for the refrigerator is $800. George also received a service contract, at no charge, that had a value of $150. During the year, George was required to have his refrigerator serviced once. The cost of the call would have been $75 if he had not had the service contract. Is George required to recognize any income from the purchase of the refrigerator, the receipt of the service contract, and the service call?

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Definitions:

Working Hypothesis

A provisional theory or supposition established at the onset of research, guiding the initial stages of study.

Lactose Tolerance Allele

A genetic variant that enables individuals to digest lactose, the sugar found in milk, throughout adulthood.

Lactose Tolerance Allele

A variant of the gene that allows adults to digest lactose, a sugar found in milk, indicating an adaptation to dairy consumption.

High-Elevation Adaptations

The physical or physiological changes that enable organisms to survive and reproduce at high altitudes.