Question

Nikki works for the Shine Company, a retailer of upscale jewelry. How much taxable income does Nikki recognize under the following scenarios? (Round your answers to 2 decimal places. Leave no answer blank. Enter zero if applicable.)

a. Nikki buys a diamond ring from Shine Company for $15,400 (normal sales price, $19,550; Shine Company’s gross profit percentage is 40 percent).

Taxable Income $0

b. Nikki receives a 35 percent discount on jewelry restoration services offered by Shine Company. This year, Nikki had Shine Company repair a set of antique earrings (normal repair cost $755; discounted price $490.75).

Taxable income ???

PLEASE KINDLY SOLVE B

Answer 1

Feedback is welcomed.