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Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles per year at a discount. Levingston's average gross profit percentage is 15%. This year Kevin purchased a 530 model and a new M3.
Model FMV Dealer cost Employee Price530 $63,450 $50,450 $54,225M3 $71,900 $60,450 $57,450
Problem 1: What amount must Kevin include in income?
Option 1: $0. Option 2: $3,665. Option 3: $2,950. Option 4: $22,000.
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