Question: 6 . All - City Hardware lets all its employees buy its products at a 2 5 % discount. All - City marks up all

6. All-City Hardware lets all its employees buy its products at a 25% discount. All-City marks up all its products by a minimum of 100% of its cost. Arnold is a store employee who bought various tools that normally retail for $200 cost to All-City of 100) for $150 during the current year. Is Arnold taxed on the $50 discount? 7. In addition to the tools (in #6) buys a used delivery truck from All- CityThe truck is worth $ 8,000, but All- City sells it to Arnold for $ 5,000 because he has been such a good employee through the years. Is Arnold taxed on the $ 3,000 discount ?

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