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Discussion Question $5-11($LO$.2)$

Ted works for Azure Motors, an automobile dealership. All employees can buy a car at the company's cost plus $2\%,$ The company does not charge employees the $$300$ dealer preparation fee that nonemployees must pay. Ted purchased an automobile for $$29,580($ $$29,000+$ $$580).$ The company's cost was $$29,000.$ The price for a nonemployee would have been $$33,900($ $$33,600+$$$300$ preparation fee$).$

What is Ted's gross income, if any, from the purchase of the automobile?

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An empyer may sell goods or provide services $($other than no$-$additional$-$cost benefits$)$ to the employee for a price that is less than the price charged to regular customers if the condition and limitations are met. This is referred to as a qualified employee discount.