Henry is an executive for the Ravine Manufacturing Company. Henry purchased furniture from the company for $4,000, the price the company ordinarily charges a wholesaler. The retail price of the furniture was $7,000. The company also paid for Henry's parking space in a garage near the office. The parking fee was $2,600 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. Henry's gross income from the above is:

Henry is an executive for the Ravine Manufacturing Company. Henry purchased furniture from the company for $4,000, the price the company ordinarily charges a wholesaler. The retail price of the furniture was $7,000. The company also paid for Henry's parking space in a garage near the office. The parking fee was $2,600 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. Henry's gross income from the above is:

Henry is an executive for the Ravine Manufacturing Company. Henry purchased furniture from the company for $4,000, the price the company ordinarily charges a wholesaler. The retail price of the furniture was $7,000. The company also paid for Henry's parking space in a garage near the office. The parking fee was $2,600 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. Henry's gross income from the above is:


a. $0.

b. $2,600.

c. $3,000.

d. $5,600.

e. None of the above.


Answer: C. $3,000


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