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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 :

abiolataiwo2015

Answer:

$43,400

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

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