What amount must kevin include in income

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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 Price
530           $63,450            $50,450                    $54,225
M3            $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.

Reference no: EM132990354

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