Fresh Bakery often has unsold donuts at the end of the day.The bakery allows employees to take the leftovers home.The employees are not required to recognize gross income because the bakery does not incur any additional cost.

Question

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The employees are still receiving a benefit, the unsold donuts, which should be recognized as gross income even if there are no additional costs to the bakery.

Fresh Bakery Often Has Unsold Donuts at the End of the Day.The