Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two vehicles 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 $63,000 $50,000 $54,000
M3 $70,000 $60,000 $57,000
What amount must Kevin include in income?
A. $0
B. $2,500
C. $2,950
D. $22,000
Answer: B