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(Solved) (Latest ver. Aug 2020) - Oak Furniture Manufacturing Company

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Judas is an executive for the Oak Furniture Manufacturing Company. Judas purchased furniture from the company for $1,500, the price Oak ordinarily charges a wholesaler. The retail price of the furniture was $3,000. The company also paid for Judas's parking space in a garage near the office. The parking fee was $2,000 for the year. Only highly compensated employees are allowed to buy furniture at the wholesaler's price. In addition, the company does not pay other employees' parking fees. Judas's gross income from the above is:

a. $0.

b. $1,500.

c. $2,000.

d. $3,500.

e. None of the above.


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This question was answered on: Sep 16, 2020

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