Brooke works part-time as a waitress in a restaurant.For groups of seven or more customers, the customer is charged 15% of the bill for Brooke's services.For parties of less than seven, the tips are voluntary.Brooke received
$11,000 from the groups of seven or more and $7,000 in voluntary tips from all other customers.Using the customary
15% rate, her voluntary tips would have been only $6,000.Brooke must include $18,000 ($11,000 + $7,000) in gross income.

Question

Quizplus · Accepted Answer

This is true as Brooke received $11,000 from groups of seven or more customers, which is a mandatory 15% charge for her services, and $7,000 in voluntary tips from all other customers. The fact that her voluntary tips would have been only $6,000 using the customary 15% rate is irrelevant as she still received $7,000 in actual voluntary tips. Therefore, she must include the total amount of $18,000 in her gross income.

Brooke Works Part-Time as a Waitress in a Restaurant