Question

Karl works at Moe's grocery. This year Karl was paid $43,000 in salary but he was allowed to purchase his groceries at 10% below Moe's cost. This year Karl spent $3,600 to purchase groceries costing Moe $4,000 and worth $6,000. What amount must Karl include in his gross income

Answer 1

$43,400

Step-by-step explanation:

Calculation for the What amount must Karl include in his gross income

First step is to calculate the Imputed income

Imputed income =$4,000-$3,600

Imputed income=$400

Now let Find the gross income of Karl using this formula

Gross income=Total salary + Imputed income

Let plug in the formula

Gross income=$43,000+$400

Gross income=$43,400

Therefore the amount must Karl include in his gross income will be $43,400