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Katena32 [7]
3 years ago
7

Norbert works in a beauty salon. he receives a 50% employee discount for salon services. in 2016, he used his discount to buy $1

,000 of services with a fair market value of $2,000. as a result of these bargain purchases, how much should norbert include in 2016 gross income?
a. $0
b. $2,000
c. $1,000
d. $600
Business
1 answer:
Crank3 years ago
4 0
The answer is D. $600. In general, the employee discount didn't result in taxable income to the recipient. The amount that may be excluded in relation to services purchased by employees, however, is limited to 20% of the amount normally charged to non-employee customers. As a result, Norbert would be able to exclude an employee discount up to 20% x $2,000 or $400 with the remaining $600 included in gross income.
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Answer:

Explanation:

1 Dr Raw Materials Inventory 40,000  

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3 Dr Manufacturing Overhead 35,000  

       Dr Accounts Payable  5,000

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4 Dr Work in Process—Fabricating 10,000  

       Dr Work in Process—Finishing 8,000  

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5 Dr Work in Process—Fabricating 13,000  

       Dr Work in Process—Finishing 52,000  

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6 Dr Work in Process—Fabricating 10,000  

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5 0
3 years ago
(1 pt.) Arna, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow. Year ended De
Natali5045456 [20]

Answer:

A.2013 $20,560

B.2014 $23,125

Explanation:

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Layer two ($750 × 1.08)810

Total $20,560

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2013 inventory under LIFO

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Layer two ($750 × 1.08)810

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Explanation:

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barxatty [35]
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Answer:

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