How much income does david have to recognize

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Reference no: EM132968297

Question: David purchased a TV from his employer. The regular price on the TV is $1,000 and the profit margin on the TV would be 25%. David paid $700 on the TV. David also purchased 2 years warranty on the TV. The regular price for the warranty to the customer is $150. As an employee, David only paid $100. How much income does David have to recognize?

Reference no: EM132968297

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