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An Electronics Store Sold a Home Theater System to an Employee

question 104

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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?


Definitions:

Self-Discipline

The ability to control one's feelings and overcome one's weaknesses; the ability to pursue what one thinks is right despite temptations to abandon it.

Supervision

The act of overseeing or managing the work and performance of others, often in a workplace setting.

Commuting

The act of traveling between one's home and place of work or study, typically on a regular, daily basis.

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